Rapid Fire Marketing Inc. (fka RFMK)

[josnyder101]

Nite has his own cash of shares as he is the MM,... Sif you have been around long enough to know that shorting is an essential force in the markets, and without it many stocks would run rampant creating huge bubbles that would eventually pop and cause major crashes... Shorting helps prevent this. Do you honestly believe they would put a stock like RFMK in a position where nobody could short it? That's ludicrous.

Here are some excepts:

By enlarging negotiation of a stock to sellers who do not hold it, short-selling improves that stock’s liquidity, which in turn eases hedging. It is an essential part of the price discovery mechanism and is one of the market maker’s instruments.

More serious still is the so-called short and distort practice which is to sell a stock short and then influence the market downward by spreading negative rumors, launching a lawsuit, or requesting the regulator to make an audit of a targeted company; such an initiative, whether the root causes invoked are grounded or not, can be enough to draw downward the price of a stock, at least temporarily, and allow the short-seller to make a profit.[18]

http://en.wikipedia.org/wiki/Short_%28finance%29

Some good info on short selling here too:
http://www.tradingstocksguide.com/investing-stocks/short-selling.php

How a short squeeze works:


Imagine you shorted the stock at $15 and you saw the price running to $20 then $25 and beyond. What did you do? If you didn’t have a stop loss order in place, you started to panic. You realized you couldn’t withstand a loss much larger than the stock hitting $30 (your broker will insist you deposit more cash in your account to cover the paper loss or force you to cover your short right away – a "short" margin call).

So you called your broker or went online and told the broker to "cover" your position – buy back the stock – at the market price. Problem is, hundreds of other geniuses had the same idea at the same time. Pour that fuel on a fire that daytraders already started and you have LIFTOFF. Everyone is buying at any price they can get. Seventy bucks for a stock that was only $5 a few days before.

Houston, we have a problem.

That’s what they call a "short squeeze." Believe me, you don’t want to be on the wrong end of one. You can lose a lot of money in a hurry just because you were sure the company was rotten and had to collapse eventually.

And here is a nice little article involving our dear friend NITE: maybe they have a little too much leniency eh?

http://www.bloomberg.com/news/2010-09-27/knight-capital-urges-short-selling-leniency-for-u-s-stock-market-makers.html