Hedge Fund A shorts 10,000 share blocks and borrows the stock from Hedge Fund B (who buys puts on the stock, knowing, A is going to short excessively). "A" makes money on the short sale, "B" makes money as the puts drop and gain value.
A COVERS afterhours to B, B sells his put options to A, and they switch sides and start all over. Result: stock drops 50% in less than a months time on a company with strong fundamentals??