Although I don't disagree in principle, it should be clear to naked short your argument would be correct, however, Broker Dealers, Market Makers etc short all the time, and this would also show in short interest numbers which are published every 2 weeks by FINRA but are actually available on a real time basis to BD's, MM's and anyone utilizing Aztec Analytics/Lending Pit (which most all US Firms do).
Any stock, Big board, or OTC can be and will be shorted on a regular basis and fully paid lending programs allow the Broker Dealer, Market Maker, FCM or Retail Broker to profit from lending stock to cover short positions at sometimes up to 200% interest rate returns. The reason Robinhood and now most other Broker Dealers are able to offer 0 commissions is because they make there money through stock loan (fully paid lending), it is a multi billion dollar business globally! If you open a retail account now with say Interactive Brokers, they actually ask if they can loan your stock and some companies will actually share the revenue generated from the stock loan with you!
So DD and Smokey, you're both right! Just Sayin
FOF