They can't borrow your shares if you have a cash account which 99.9% of OTC investors have - to borrow shares you have a margin account. In a cash account you would have to tell your broker your shares are available to borrow - and you would get a percentage of the borrowing fee.
To short a stock you will need a margin because of the $2.50 rule. The $2.50 rule applies when you are short selling stocks that are priced under $2.50. Basically, the rule states that for every share you are short, you still need to put up $2.50 of capital, even if the stock is priced lower.
What that means - if you borrow 1 million shares of AVVH to short you are required to have $2.5 million in a margin account.
No one is shorting AVVH.
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