The vast majority of the shorting in penny land is done at market maker level. The margin required are not even remotely close to the same. They also have the ability to park short positions and transfer them around to keep them hidden.
This is why prudent investigating links known stock message board forum bashers to these market makers or the funds they represent.
Just an urban legend that speculators love to blame. I know a for some time a market maker personally and he says amongst market makers it is the biggest joke all these urban legends about short selling. Just think about it, if short selling going on in sub penny pink sheet stocks how come except in extremely rare instances it is never factually reported ?
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