What we try to do here does not make sense and wouldn't affect their ability (or inability) to borrow and lend shares for shorting. At some point I was told when they (the brokerage) need to borrow shares they don't have visibility into currently open orders so this factor is never a consideration in the borrowing/lending process. In other words they are able to borrow your shares even if they are already put on sale. Also, they use multiple criteria when they decide if they can lend the shares to a short seller, but generally speaking it is mostly based on the quality/value of the stock. At this point they don't usually lend penny stocks like PTK, unless it is for a large client, at which point they can make an exception. Also, they can only borrow shares from margin accounts and never from registered, so don't bother with those GTC orders if you trade the stock in a registered account.