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mikez3277

04/08/21 10:27 AM

#39526 RE: Skwerel #39525

Market Makers of an OTC stock often short against shares they can see in their own in-house inventory. Market Makers may often be short selling on behalf of a customer with a T trade after hours to settle up.

Convertible debt holders of OTC stocks that have large prime broker accounts often short against issuers that they hold loans of. This method of finance is known as toxic lending or death spiral.