Nobody shorts penny stocks THE MARGIN REQUIREMENTS ARE TOO HIGH, $2.50 per share Except market makers who go short to fill orders, the tiny trade short position is further evidence that this is a co ordinated dump with occasional ( monthly ) pumping PR, all the MMs know who has the AXE and simply fill their stray orders with him, he doesn't have to short because he is 'in touch' with the syndicates stock.