The risk with being short with a spinoff is that you own two stocks short - and obviously if BOTH stocks move up it will cost you. People that short stocks are pretty vigilant and watch pretty closely. As far as some MOASS - there are not that many shares short - and it was dropping - http://www.otcmarkets.com/stock/MCIG/short-sales plus some of those shares could be short against the box and it wouldn't have a dramatic effect given they borrowed shares they already owned. but hey - have they brought up naked shorts or those dumb daily short volume numbers yet? craziness...