Hyperdynamics Corp (HDYNQ)

[bw2003]

Explain simple terms why 25-30 million shares are shorted

What I do not understand is that the people that are shorting are smart people. Do they know something. I do not understand how or any intelligent people would keep betting against the stock.

From what I understand short is when you sell the share for example at $5.00 and then buy it back at a higher price. That I understand.

What is covering, how does someone have so much time to cover. I do not understand how price is being manipulated, how are they doing it? Why these people risks millions of dollars on this.

For example if the NSAI report comes out and average price is $5.75 and average price for shorting was $4.75 then they lost 25-30 million (What ever number of shares shorted). Did I understand this correctly?