There are many reasons Pennyland stock prices fall. But being shorted is not one of them, now days. They could fall because broker/dealers became naked short trading in a fast running attention pop and they manipulate price lower to cover before the 3 day cover period or 13 day REG SHO period. It could be retail herd boredom, just switching to the next hot stock. Day trader manipulation to re-enter lower. Or lack of expected follow up news from the company. Or just the plain fact the short term emotion bubble burst. But relaxing while any of those reasons exist is high risk. Because prices on the OTC can fall as fast as they pop. Getting caught waiting for more isn't pleasant.
One really needs to learn to sell while playing on the OTC market.
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