Those reports have nothing to do with an actual Short Position and are an "ownership" marking requirement of SEC Rule 200. Because the OTC is a two tier market, one tier with Brokers and the other tier Broker Dealers, anytime a transaction cannot be executed internally by your broker the order goes to their contracted MM. That MM executes Riskless Principle transactions in which the initial leg is short the shares and then purchases the actual shares from the selling party for the cover.
Yes, the number is accurate. But it's not telling you what you understand it as.
The bi monthly reports tell you how many shares short are outstanding.
The daily numbers tell you how many shares sold THAT DAY were not backed by long positions at the MOMENT of sale. They could have been covered seconds later. Minutes later. Hours later.
There could be a million shares shorted that day, but at the end of the day the net short position be zero. The report will reflect the million shares shorted
The FINRA daily short volume information is some of the most misrepresented and abused information discussed on OTC stocks. Without equal. Entire websites exist to present it as some sort of indication of growing and massive short positions on OTC stocks.
And the attraction to that narrative by promoters and insiders is understandable. It provides a convenient "explanation" for massive "selling" and downward pps spirals that are actually being caused by insider selling...and have nothing to do with short selling. NONE.
Simply put the daily short volume information is meaningless....in every way. It has nothing to do with a stock's pps movement or dynamics. Much of that "short volume" is because of LONG transactions and how they are reported.
Anytime someone is pushing the NSS narrative based on that information they are ONLY misleading people, either inadvertently....or on purpose.
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