Absolutely correct. The short list is just shares traded that have not cleared yet. MM's usually have up to 3 days to clear sales. And correct about what it costs to short a penny stock. It is not financially sound to even think about shorting a penny.
no not completely, if Ascendiant Markets (ASCM) knows of DILUTION then the will sell short shares along with the dilutive shares, and even worse is if they are the broker thats selling the shares for the noteholders, then they will short the stock even harder because they have a handle on the dilution