Wasn't that particular stock exchange listed, which different margin requirements apply?
What could a stock exchange do to get it around the 2.5 margin requirement? I assumed starting with the $37.5K, adding in the 2.5 margin requirement, and then the broker requiring a 50% margin requirement range beyond that. Guess technically he could have shorted 7.5K shares. But if you use 6K shrs *18/shr movement, then the result is the amount he claimed he lost. The end result loss amount makes the initial assumptions plausible, as to the number of shares Etrade allowed him to Short. After all he was looking for that shur fire -2 "fade", and would've maxed out his shares.
The Jewel of the Mind is Colored with the Hue of what it Imagines