As a short I have to agree with you with on your post. I really don't think that many shorts are aware of the ramifications of a sudden bankruptcy on their position.
Just look back to 2012 at Patriot Coal PCX. One day the stock was trading in the $3 dollar range, the next day they filed for bankruptcy and were delisted.
JMO JCP will not file a out of the blue bankruptcy. I think it will be obvious and longs and shorts will see it coming at least a couple quarters out.
Listening to CNBC will make you poorer.
It will last a year, probably two to three years as long as Eddie can keep selling assets, spinning off brands and selling real estate and anything else that is not nailed down.
This stock is headed lower because of redemptions that will force Eddie to reduce his stake in the company.
Eddie can only liquidate assets to raise cash for so long before there is nothing left.