It is not about about "high" price. NVAX is a biotech, lots of them them will have special margin requirements. Because they move like crazy on news. Look at ICPT in 2014. I'm guessing OSTK - because it has crazy volatility, it moves like 10% per day. Once correction starts it will lose 30% in like 2 days. IB currently requires 100% margin to initiate and hold long, NVAX - 200% to short. Val
To clarify it not that the broker requires 100% margin but that when it makes a marginable into a non-marginable which creates problems because of additional regulations. This statement does not apply to e.g.nteractive broker which may have a high margin requirement but does not turn a stock into a non- marginable stock. You cannot extend credit on a non-marginable stock.
You are right. My guess would be whatever an increased margin reqs is in effect that would have similar effect as you're describing. But I could be wrong.