Strange but where is the flag for such a claim, the SEC has strict guidlines established for stock that show FTD that exceed the rule 3210:
Regulation SHO defines threshold securities as any equity security of an issuer that is registered under Section 12, or that is required to file reports pursuant to Section 15(d) and where, for five consecutive settlement days:
there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; AND
the level of fails is equal to at least one-half of one percent of the issuer's total shares outstanding
FINRA Rule 3210 defines threshold securities as any equity security of an issuer that is not an SEC reporting security and, for five consecutive settlement days, has:
aggregate fails to deliver at a registered clearing agency of 10,000 shares or more; AND
a reported last sale during normal market hours (9:30 a.m. to 4 p.m., ET) for the security on that settlement day that would value the aggregate fail to deliver position at $50,000 or more.
That statement also lacks validity because here is the short report and well September was the begining of the latest short spree, there was a period of no shorts from March through August:
Short Sales
Date Short Interest % Change Avg. Daily Share Volume Days to Cover Split New Issue
Nov 30, 2010 50,000,000 999,900.00 48,540,952 1.03 No No
Nov 15, 2010 5,000 365.55 42,026,097 1.00 No No
Oct 29, 2010 1,074 0.00 23,709,875 1.00 No No
Oct 15, 2010 1,074 0.00 38,682,848 1.00 No No
Sept 30, 2010 1,074 0.00 14,212,560 1.00 No No
Sept 15, 2010 1,074 100.00 47,839,155 1.00 No No
Mar 31, 2010 0 -100.00 9,223,571 0.00 No No
Mar 15, 2010 10,405 100.00 4,720,525 1.00 No No
Feb 12, 2010 0 -100.00 6,589,015 0.00 No No
Jan 29, 2010 986 -65.78 3,921,078 1.00 No No