"The fact that something is sold, and not located or delivered, and then not reported as short interest due to a loophole, is why it never shows up as short interest."
It never shows up as short interest because it is covered in the second leg of the transaction within the allowed 3 days...usually within seconds.
It is also why there has never ever been some huge hidden naked short suddenly uncovered on a penny stock.
Not ever.
It is just a comfortable and convenient conspiracy theory to avoid the reality that the stock really is a dead 0.0001 no bid POS.
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