So, while short and distort may be much more a problem for listed stocks there is NO way it is more of a problem for the penny stocks. Most people cannot short penny stocks therefore, pump and dump is the scam most used. Contrary to your thinking that we may seem paranoid about this it has been proven over and over to be the scourge of the pennies.
You are forgetting one salient point...shorting penny stocks is prohibited only in US markets. For the rest of the world it is open season. You would be amazed at what comes out of Taiwan and Hong Kong these days.
David Weed aka the Bird of Prey www.warp-drive.com