microcap the MMs can legally naked short it is accepted by the SEC but just in their particular case is it legal. No weather they do or don't is up to them and I agree with you they are not likely to with the price this low and with no liquidity seeing as they would have problems trying to cover.
I think the 100 share baloney trades is merely folks looking for initial entry. The dinky trades aren't doing anything other than giving them $20 in and out commissions. On 100 shares that is costly when it does not work. They would be better served to put in their orders at $.04 -.045 and chew up any available volume. jmho
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