Sorry, shorting is not the reason for the price decline. Short Squeeze shows about 36,000,000 shares short, about 2-1/2 days volume to cover. Those numbers haven't fluctuated much for the last year or two.
"NLY got shorted and oversold too fast"
It means a combination of both, shorting and edge fund selling at the same time. This was pure manipulation from financial media HEADLINES miss-quoting Ben Bernanke about interest going up in September, 13 Quantitative easing WILL NOT SLOW DOWN UNTIL THE END OF NEXT YEAR AND THAT'S A MAYBE!!