shorts and the deal The shorts aren't trembling. Only supposition, but the Indian company shorts the stock all the way down to where the 20 day moving average plus a 20% premium equals $8.15. They buy up 5.5 million shares. Yes, it will cost them something to cover their shorts, but not nearly as much if they would have left the stock alone and they would have had to buy their stocks in the $10-12 area. It doesn't sound ethical to do this type of stock manipulation but it isn't illegal. The shorts will cover sooner than later, and we will all see some upward gain from it.