I have shares in a micro cap biotech which has recently been shorted; so in answer to your question, no. It seems shares can be shorted if they are outside the ASX 300. There may be some share lenders however that may not loan shares outside of the ASX300 due to a greater risk of a SP spike associated with small cap and micro caps... but that is an answer to a slightly different question.
total daily shorts, page-21
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