If it is proven that the shorting contributed to the decline and subsequent BK, and also if it is proven that the shorting was for the express purpose of creating the situation that ensued, then they would most certainly be forced to cover. Also, if any of that was done with the aid, consent or for the benefit of JPM...then it could even have severe legal ramifications.
"During times of universal deceit, telling the truth is revolutionary" George Orwell
"The only thing worth globalizing is dissent." Arundhati Roy
