It does not have to be that complicated.They can only short your shares if they are held in a "margin account". Just keep shares you do not want to be shorted without you permission in a "cash" account.
Most brokers ask you how you want them held? You can have both types of accounts
I pray nobody is trading in pennys with margin accounts. Thats suicide.
And tell me if MM sells shares into massive gap runs up when they don't even have the shares? They have 3 days to find shares to clear those high price orders. They use air shares all the time, probably Friday. And will be covering those sales Tuesday or Wed. They know the price is coming down so why not? The DTCC has their hands in it as well.
Its a nice racket they have.
I don't thing MM 'short' like you are talking about here in pink land. Its more brutal. Let a pink run 5 or 6 or more days with out a pullback. Thats where they get screwed and we get clearing halts on stocks. The ole sell only but no buys from your broker. You and I know whats going on. They do more than takev a short position, they sell you air. increases the free float and builds a tank in price. Everyone loves to blame the company fro Dilution, or a secret big seller, no its the boys making the market. Play their game and make some money.
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