from what ive read, one way is to make our shares unavailable to be borrowed. and that can be doen by placing a sell order. it doesnt have to be a reasonable sell order, i put mine in at .0015, and renew it daily. The reason to short a stock in this range is simple. think how much money someone makes if they buy shares at .0001, and sells them for .0002, or .0005. the same holds true for someone who borrows shares and sells them for .0005 and is able to buy them back at .0001 to return to the lender. thats why you have paid bashers. to knock the price from .0005 to a lower price so the person who borrowed the shares can buy them back. the problem is when the pps does not go down. if it goes up, the person who borrowed the shares is gonna lose money, because they have to return the shares. so what they do is flood the market. they will borrow enough shares to make it look like a huge dump (take yesterdays 100 mill at the end attempting to bring the price back down to .0003) this scares investors into selling because they think its dilution. this is the reason for the paid bashers that you see on iflub. and iflub protects them. thats how they make money. they have been sued several times over it.
check out these links for more info
http://www.stockmarketcats.com/showthread.php?t=6903 http://www.regsho.com/faq/nakedshorts.php http://www.investopedia.com/articles/optionin...elling.asp these links explain how market makers short stocks and celler lock them. its not your retail brokers or average investors who do this.