This would only work if the MM's follow the rules

This would only work if the MM's follow the rules of the regular stock exchange which they don't and aren't required to. This rule holds true for the regular stock exchange and it is the point of contention for the numerous court cases we talk about all the time. The MM's on the OTC do not have to borrow shares to sell short. They are just supposed to cover the short position in a reasonable amount of time. Putting your shares up for sale at a high price does nothing to stop the naked short selling that is going on. It gets brought up every week or so by someone who reads it somewhere and thinks it is a viable solution. IT IS NOT!