You are talking about why penny stocks are volatile and yes, that's all true. However it's also true that the upside/downside asymmetry is especially pronounced for them.
I'm confused. Do you believe that if you took a penny stock and divided its share count by 100, thus multiplying its price by 100, it would be less risky for short sellers simply because of the price? Let's assume for the sake of argument that it's current price is in the $3 range, so the fact that the minimum quote is in pennies isn't a large effect.
This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Don't be shy, everyone has holes in their knowledge, though the fewer and the smaller we can make them, the better.
Please be respectful of other people's admitting ignorance and don't mock them for it, as they're doing a noble thing.