Yes and, JMO, but if I were able to (through the proper venue) short penny stocks, I would. It's much easier to make money short stocks than big companies, because there's a fair share of penny scams, not to mention how easy it is to cause doubt in penny stock to spur the price to lows.
Not really. The idea is seductive, because in the end most Pinks fail, but it's the short term you have to worry about. Any Pink can run at any time, for no good reason. The scammier they are, the more likely a run is, much of the time.
And if that happens when you're short, you'd be absolutely wiped out.