Despite "receiving" $40,000 in your example, you have a $40,000 margin loan debt and $40,000 less in buying or shorting power. Your "investment" is $40,000.
Furthermore if one shorted JBII at $4, at $1 their online brokerage account would say "75% profit" -- it is absolutely impossible to profit more than 100% on a short position.
But don't take my word for it -- use the simple calculator in the link above. Call Etrade. Call Ameritrade. Ask somebody with actual successful shorting experience.
Raw
Research & analysis on some of my favorite stocks is located on the sticky note on the SwingTrade board.