Number one, what you suggested would be highly illegal. You can't manipulate stocks like that. Of course it has been done before, but people can go to jail for that, thats big time. Aside from that if they did cover their short, then they are flat, why would they sell again here?
Second, even though you see 100 share lots on your time and sales, that does not mean they are seperate orders, sometimes orders are just filled like that, does not neccissarily mean anything.