Stinky pink myth. Nobody shorts a penny stock, it would be mindless. Who puts $2.50 per share in margin for a couple cents potential gain? Nobody.
Shorting is the scapegoat for selling of the stock by front loaders, toxic note holders, insiders, or, in this case, “non-US investors” who were gifted stock at a very low price. The toxic note holders can convert in a couple weeks, and are counting on retail buying this crap about a short squeeze and there being any substantial market for a $500 suitcase with a battery pack in it.
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