It's entered, they just don't report it to the entity providing the data to individuals. Remember that what brokers get to see has much more data than what individuals see. It's easy for them to do this because OTC stocks are traded on several different electronic exchanges.
I KNOW that the orders are in fact entered, because I have entered orders that never showed up on Level 2, but after the close I got an email telling me that my order had expired.
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