you obviously don't understand how short hedge funds work, do you. They can't just come in and start and open market sell blasting away. There has to be some strategy. First you silently come in and start your discrete selling of what you think is the peak, ie 30/sh, then once you have sold enough shares at the peak then you tell the world what a garbage this company is. And then you come in and masssively selling away at market order, casuing a huge drop in price as if someone just dumped theire shares. Thus, the millions of shares that you shorted at 30 is now, let's say, 20 You have just made a $10/sh profit.