The likelihood of Sphere having an agreement with the shorts (whoever they may be) is about the same as Benjamin Netanyahu throwing a birthday party for the leader of Hamas.
It is more likely that right now we are in sort of a "dead zone" between the announcement of the merger and when it is actually consummated. Nobody is totally sure exactly what the new company will look like. Add to this that the company has been extremely tight lipped about any new business dealings and you have a climate that is not exactly conducive to new buyers (especially institutions) taking a position. The only buyers seem to be those who have a complete belief in Sphere's management, product and eventual fantastic success. And most of those are already heavily invested.
On the other hand, there are always natural sellers. While there is only ONE reason people BUY a stock; expectation of GAIN, there are ENDLESS reasons why people SELL. Fear of LOSS, money needed for other things, margin calls,taking a short position, etc. So in a period like this it is normal for sellers to outnumber buyers and the price to fall.
Of course believers like us KNOW that it is only a matter of time before the true value of the company becomes apparent to even the most skeptical and the share price takes off like a snake fleeing from a Mongoose.
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