first, people say a lot of things. do you know what is required to short regarding margin and maintenence? the capital requirements are usually prohibitive to most. it's easier to make money with less risk. second, shorting is not illegal. if they shorted, they covered. day trade over.
the figure i gave you before was the open short position on 3/31/11, the last date available for open short positions. 19,571. any short sales that were covered would naturally not be on that report. you do understand that shorting a stock and having a short position is completely different than an mm going short to make a market, right?
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