Here is a relevant excerpt for the article: ---
Post# of 43064
excerpted from Insert-tag-hereJust A Short Minute! The Long & Short Of The REG SHO List!
by Brenda Hamilton, Attorney, Hamilton & Associates
@ http://www.pumpsanddumps.com/2014/02/just-sho...g-sho.html
***
How Stock Bangers Misuse the Threshold List
Stock Bangers sometimes build entire promotional campaigns around the Threshold List. The Stock Bangers assert that the Threshold List proves a particular stock’s decline is temporary and the result of bashers working with short sellers to conceal insider or their own dilutive selling. The Bangers tell investors to buy the stock to create a "short squeeze". A short squeeze generally refers to the sharp price increase or unavailability of a security to borrow to cover a short position. If a squeeze occurs, short sellers must purchase the stock to cover their positions. What the subsequent trade is actually reflecting is not a purchase by a short desperate to cover its position, but a purchase by a naive investor who is buying the stock the Bangers themselves are selling. Short squeezes are quite uncommon in penny stocks; covers or close-out buys of short positions rarely impact the price of the security even when the security is on the Threshold List. By blaming short sellers for a decline in stock price, Stock Bangers cause investors to hold their positions enabling the Banger to get a higher price for his shares. Promoters and their clients invariably dump into their own pump, and their object it to persuade retail traders to help them do so.