Sorry but I don't see it that way. If there is a short of say 50 million shares that means that the company will only issue enough shares to cover the non-shorted shares.those who own any of the shorted shares will be looking for theirs. They have to get theirs from some where.
I'm getting thirsty dammit!
Oh yea, everthing is my opinion only. Please make your own decisions and consult your own financial advisors for both investment and income tax issues.