That’s short volume, not short interest. Big difference. The OTC is a two tier system, anytime an MM completes a transaction between brokers using riskless principle, it results in short volume. No MM owns a share of this stock nor do they even want the risk. Making a market is selling an open position in the FIRST leg, while buying from the seller on the SECOND leg - therefore no risk exposure. It’s called Riskless principle.
If a stock lacks significant fails to deliver, it cannot have a problem with naked shorting:
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