Have you tried to short an OTC stock? The fees are astronomical compared to the possible gains to be made and that's if you can find a broker who will do it along with the borrows (in 15 years following these I have yet to find either). You would have to risk millions to make a thousand. It makes no sense whatsoever. It does give unscrupulous people an excuse to convince naive others to hold forever though.

the idea of naked shorting on the OTC is ludicrous. A hundred people would have to be involved in a massive conspiracy - all risking their already very lucrative careers plus jailtime - for next to nothing. With RegSHO it would be trivial to identify those people and stop it.

It makes FAR more sense to illegally pump a worthless stock with a bunch of lies than it does to short one. The potential gains are unlimited, unlike shorting.