As I mentioned before, in penny stocks, I have seen less than a million of the float exchange many times by day traders to make < 0.01/ share with> 50% profit. 16 million shares traded in a few months can easily come from a float of a million shares or less. When good news come out, many daytraders looking a penny stocks quickly get in without knowing much about that particular stock and then hope to make 50% or more in a day or two, then if they see reversal they sell even at a loss and move on.. CGNH is no difference.

I have actualy seen a penny stock exchange twice as much shares as existing float on good news, within a week ...then slowly fall off and with many making money and others with bad timing lose money and eventually show up in reports with meaningless shorts ...

OTC reports bimonthly stats of Shorts, latest bing Sep 15 report thats shows 28K short. I do not believe in your premise that naked shorts (that are not covered within 3 days) that exist in off-shore accounts. This is a rumour from Raging Bull Jag/CGNH board that never materialized even after the symbol change that was supposed to correct the offshore naked multimillion short (actually multibillion before the 1:10 reverse split).