I commend you for your study. Nothing stops an argument more quickly than someone who knows what he is talking about.
I give you a point that all serious students of penny world gloss over and as a result walk past a fortune and don't see it.
Prior to REG SHO there were shorted stocks that were not part of the rule. The SEC stated at the time that there was so many shares short as to stop the stock market dead in it'e tracks. Therefore the deceided to grandfather in those stocks that were short so many shares as to be detrimntal to the mm axing the stock.
A stock of this nature would be a gold mine. If one were found where NITE were the ax and he was short the entire float would that not be a gold mine ?? If there were a chance that he was naked short (and I am not saying he is) would that not be the beginning of the end for this market maker. Can anyone even think what the world would be without NITE ??? I have to stop. When it gets better than sex you stop.