Now if you believe YOU can short a penny stock just try and do it - bet you can't.
Canadian brokers can and do short USA penny stocks. TDW was/is Canadian. I've read posts attesting to US citizens shorting penny stocks through interactivebrokers.com But their commissions are high (1/2 a penny per share) 100,000 would cost $500 commish. Shorters think thats a bargain I guess.