For those who don't know, this is a list for securities that have excessive and persistent failure to delivers (FTDs). This is most likely a sign of naked shorting, a form of manipulation by broker-dealers who sell stock they don't own and don't intend to borrow. They sell IOUs instead of shares, which destroys the market forces of supply and demand for shares and drives the price lower.
The SEC is lacking in enforcement, though naked shorting is a crime.
Buying on margin allows your broker to lend your shares to cheaters who use them to paint the tape while volume is low, but when volume spikes they just dump IOUs (share entitlements) on the market and wait for lower volume to go back to painting the tape with your shares. They also pay message board bashers and "reporters" to generate negative PR.
Do your research on naked shorting. Knowledge is your first line of defense.
FYI, I am neither long nor short AVID. I learned about naked shorting when I noticed one of my former positions being manipulated on Level II. Soon thereafter I learned it was on the Reg Sho list.