Elite Pharmaceuticals Inc (ELTP)

[ARbigguy1]

Can you short OTC stocks?
This question has an interesting answer. Yes, you technically can short Over the Counter stocks in that there is no law forbidding you from doing so. The problem with this comes from the mechanism of shorting itself. Typically you need to borrow these shares from a brokerage to start your short sell. Well, most brokerages will not have the liquidity in the Over the Counter stock to even allow short selling.

With lower liquidity for the stocks, it is definitely easier to manipulate the price action on the OTC markets. This means that short sellers can take advantage of this and potentially initiate a short sell that could decimate the OTC stock. Because of this, there are some brokerages that will forbid you from short selling an Over the Counter stock.
https://www.tradingsim.com/blog/over-the-counter-otc-stock-trading-explained-tradingsim
So, YES, OTC stocks can be shorted. It is legal! Now, having the money and connections to short is the key. In the USA or off-shore, someone is in a huge coordinated effort to drive ELTP down, but who???
Or, is it the short term traders dumping for a profit as they know there will be no more reports until JUNE 2024 when Elite releases the Annual Report. We may here news of an ANDA approval but FDA is not in as big of a hurry as they were a few years ago.
IMHO, at some point this year 2024, the market will correct for ELTP and all those on the wrong side (short) will LOSE hugely!!!