Thanks for the info. And FWIW, I wouldn't have a problem with treating pennystocks the same as any other stock as far as shorting goes. It's the naked shorters that should be shot in the head at close range a million times with a BB gun.
Everything you said made sense to me right up until you said this:
"I was in PAIV and sold the stock before TDA had the certs in hand even though they said I could buy and sell and that they did have the certs in hand. Long story short, they had me $750k short in a penny stock (that I paid $250 for). I had them recorded so they backed off but I heard some they forced into a short position IN A PENNY STOCK had to cover (buy out). FWIW"