Both YHOO and MSFT suffered enough from bloodsucking shorts. They might have wanted to give them a good lesson before they close the deal. Now the shorts will have a short lived party next few days until YHOO and MSFT make a deal a in mid 30's. This may be good favor to the insiders family and friends.
You might be very right my friend. You see the initial reaction of shorts is to immediately short YHOO Monday because YHOO rebuked MSFT offer of $31 all in cash or 50/50. But the bottom line here is that Ballmer is not pulling out of the deal so his bid of $31 all in cash will stand and that will support YHOO price. In fact during the day, he could make an annoucement nice to the ears of YHOO Longs, then YHOO will jump way up and scramble of YHOO shorters will immediately begin to cover their shorts. Shorts you must be scared because the scenarios are beneficials to YHOO Longs except if Ballmer pulls out of the deal. Remember the maagic number 31.