Yahoo shows the low estimate as 29 cent loss. A 26 cent loss won't be a killer. Also, Earnings Whisper shows as "confirmed" that the report will be made BEFORE the market opens. The VELT press release shows the info will be after the close. Their could be a nice surprise brewing...
If you shorted this stock from $5 or above would you be worried about it going to $2 overnight? A lot of them would rather take a chance then pony up the tax dollars. There are a lot of comfortable long term shorts who are in the money with little to lose.
I am long and hoping for good results as the $2 would be great for me.
Nothing to lose? Shorting a stock is literally the most dangerous thing you can do. Buying puts on a stock? Sure that's ok but straight up going short the equity can incur over 100% losses and it happens very, very quickly.