Here's a little something else a retired friend to
Post# of 40989
I have always laughed when these same people tell others that shorting just does not happen on the OTC. The reason they cite is that it is just to expensive. However, I must tell you that a market maker can short all day long, and the fact is most all of them do --- it is legal for them because it is allowed for the purpose of making a market, and it costs them nothing at all. This is why I tell you arguing with these people is futile. So, state your case and move on. Others may pat you on the back for your efforts, but a market maker knows how to manipulate the system, and they do. Unfortunately, I knew many of these people on the various boards that I moderated over the years. But here is a little known secrete, most of these people do buy when the stock price drops. The reason is because they are told by the market maker they work for when the shorting will stop.
And, don't worry about a market maker getting caught in a squeeze. While such things do occasionally happen, it is rare and they typically do hedge their bets so as not to lose all.
Hope this helps out some.