Naked shorters have absolutely no interest in a .0001 stock for the simple reason that there is no margin for profit.
Selling short at .0001 is the apex of stupidity, since it is impossible to cover such a venture without losing money. Furthermore there is no way to avoid an eventual cover requirement as trading shares NEVER die.
Please apply just a few neurons to the concept for a moment. If a company is driven into bankruptcy (according to the favorite scenario of the conspiracy theorists) it goes to probate with whatever assets and liabilities it has accumulated. Even if the stock has been suspended the shares still exist. Anybody with half a brain would snap up such a shell in a heartbeat because they know they could make a fortune by buying up as many shares as they can and then merging the shell with their own company thereby forcing a squeeze.
Think about it. Old mining stock that has been dormant and not trading for decades are coming to life as we speak because the price of gold has increased to the point of making those old veins profitable. The numbers of those old mining stocks that turned to printing shares when the mines shut down are still out there, not trading but still viable.
It is impossible to drive a stock into oblivion, the shares still exist and are still viable. That is why no one would EVER short a stock without enough margin to provide a profitable cover and no one would EVER short a stock indefinitely. The risks are too great and the margin of error is nonexistent.
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