Not sure how I can explain this differently so you would understand it but there are two entirely different kinds of shorts. The one FINRA reports on twice per month that you are referring to as being 1% is the legal short which is good for the stock. Yes these folks are betting against the stock rising in price but they are borrowing shares to sell and at some point win or lose will have to purchase shares to cover their short position.
The other short is when done abusively as has been the case with CTIX and IPIX is criminal and is called naked shorting since shares are not borrowed to sell against they are just sold. These sellers are often hedge funds, investment banks and the like. Few are prosecuted and regulators tend to look the other way especially on OTC stocks. These shorts goal is to bankrupt the company by repeatedly selling shares that they do not own nor have they borrowed.
Our management understands what is going on and have fought back.
Thankfully our pipeline is such that it poses real problems for the naked shorts.
This piece is a valuable resource in helping investors to understand abusive naked shorting. http://counterfeitingstock.com/CounterfeitingStock.html
Go IPIX!!!