Zeons Corporation (ZEON)

[king oil]

they cover their short position by purchasing shares at whatever price they can. if they shorted at 50 cents and cover with shares at 46 cents they made 3 cents per share.

if they shorted at 50 cents and cover at 55 cents they've lost 5 cents per share in the deal.

the higher the price, the more they lose, but they can always cover as long as they can purchase shares.