Virtually every stock out there gets shorted to some degree, it's just that most have enough volume (buying demand) to offset the shorts. But when you are only trading a few million shares, it's tough to build any buying pressure.
Bottom line, until there is something to talk about, there's simply not enough demand to raise the price.
So Jon if what you say is 100% true why should any of us even bother to be long anymore given the stock will never go above like 1.50 based on your theory? Why are you still holding?