If they are actually shorting this at .0001, it is because they think the price will plummet after the R/S (as is usual with penny stock reverse splits). When they borrow and short sell shares on the ask at .0001, the amount of shares they short and are liable to cover is also affected by the R/S. It's not like they'll have to cover the 200mill that they may have shorted today after the R/S... they'll have to cover 40,000. &btw to break even they have to at lest cover at $0.50.
Honestly, if I could short this in the same way that the MM's might be, I definitely would. I don't think this will even see .50 after the R/S; it'll go straight down to a dime, if not pennies. Easy money in my mind.
All of this is my opinion. I am not bashing this stock. I am simply predicting future price action as some of you do countless times a day weather it be in a positive or negative direction.
