That I agree. The breakdown of ELTP is not from shorting, but rather lack of fundamentals & increased uncertainty. Investors hate crappy results, but they hate uncertainty even more. Much tougher to model out.
And shorts need $2.50 per share in their margin account....That's a huge amount of $$ tied up, and at risk of price spikes and margin calls. Risk-Reward sucks for shorting pennies which is why it is so rare in any significant amount.