The shorts thought they were going to ride two horses simulaneoulsy: A) Bernanke killing the markets with the end of QE and B) Periodic selling of shares to raise capital.
The market has aleady had its "vaccination" from scenario A). QE will taper and it won't slam the markets. As for B) the dilution will continue, but the distribution will continue rising, as DAR predicts, by a penny a quarter. It'll be tough on the shorts to squeeze a profit while paying out $.20, $.21 and so on each quarter. With the market as a whole doing better they'll also find themselves squirming on those gut-wrenching days for shorts when the DOW soars 200 or 300 points.