When true MM's short shares they hold millions between accounts on different brokers as to avoid sec regulations. In the penny world it is easy to manipulate because of lack of bid support. So what they do is short shares to the true bid support, short shares to the true buying, and then cover by swapping shares from one account to another. Notice you did not see the bid support for the massive dump yet we closed even. That followed up with today's date, being that it is the end of the month, means it was pure and simple swap trading so they don't have to cover up. It is against the law but they get away with it because of the low volume, different broker accounts, and normally live in lawless countries.
Now when a company runs X amount in X days you hear the word short squeeze, this is because they must cover up when a company has a lot of volume that runs for awhile. They have to cover up when the pps has intense volume in a upward direction or they could lose millions of dollars in a matter of days. Now that doesn't mean they wont continue to short the stock as it runs up but they tend to short on the ask while covering on the bid. Then we get into the whole, what we saw happen at 5 cent thing, lets start a panic because we shorted to much and we know how the OTC reacts.
It truly is a ruthless game. Hope that helped.
