There are two types of shorts. One can short a position on a stock, lets say MSFT. A short is essentially a sell and your sell is matched up with a buy from somebody else. Then, there are "Naked Shorts", where a market maker shorts or "sells" a security without matching a buy to it. Consistent naked shorting will drive a share price lower because it looks like its all selling and shareholders will bail. I own a stock with 22 million shares available to trade, that has traded over 120 million shares since september 1, its being naked shorted to death.
If the company (PDSC) was comfortable with its business plan and current health and could raise about a million dollars you see a pretty good short squeeze. Since many of the sells were not matched up with buys there would be a mass scramble to cover. In theory if the sp is .002, 1 million would buy 500 million shares, it could be wild. If they could ever get this stock anywhere near one penny, it would probably go to .03-.05 real quick.
All of this is my opinion but I bet its pretty accurate.
Good luck.
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