I did the same in my etrade account several years ago. All of my shares were in a margin account, and the etrade rep confirmed they use a pool of shares that are available for shorting that come from margin accounts, and the best way to prevent them from getting access to my shares was to create a cash account. I still have my margin account but transferred all of my cydy shares to my cash account.
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My comments are just my opinions and should NOT be taken as investment advice.