All of that is true information and good digging.. problem is, if you look up how many times on line brokers... NITE Etrf and a couple other have been fined for shorting stocks that they are not allowed to short... you will see its several times each.
Why...they make more then the fines cost them. You and I as on line investors can not short them...but that does not mean our brokers are not shorting when we or others buy these sub penny stocks... they are and they do it big time.
NITE is aligned with Scottrade... I have several people who have told me that they could not buy from Scottrade, even when they own shares... its because NITE turns down the order and none of the others will pick it up. Its very common from what I have gathered.
News 
Market Data 
Discover 
