You do realize that the short report has nothing to do with retail traders, like us, right? At least in the penny stock world. It is where MM's have not covered by close of business, which must be reported twice monthly to the SEC.
If you don't believe that, just go to your broker and tell them you want to short 1000 shares. You will have to have a margin account, since you can't borrow stock with a cash account. You would also have to put up $2.50 per share shorted, so $2500 just in margin to short 1000 shares. If it goes down, you might make 1000 X $.005, or $5. That's right, you would be putting up $2500 in order to make $5 ONLY if the stock drops by the amount specified. If it goes up, you lose all the way around.
But your broker will tell you that they don't permit shorting penny stocks anyway, so you CAN'T short it even if you want to, if you are trading through a brokerage.
With $2500, it would be far wiser to just BUY 1000 shares, and take your chances. If it drops, you sit on it. If it rises, you can sit on it or profit from it.
MM's generally borrow stock to fill orders. They usually cover in microseconds to seconds, but occasionally, it doesn't cover before the day is done. That is what is reported to the SEC.
Oh, and short volume? Which was linked...is not even related to short interest. It is just a case of bad choice of words for naming the report. Google for short interest vs short volume to learn the difference. Short volume basically is an indication of how much the stock is being traded, where higher is better.
