there probably will be a mass exodus up to a certain point... however, if we can convince people to not sell under X dollars, and only sell enough to cover their principle, then we can keep the PPS up to a certain level. And when it hits the NASDAQ, more investors will come in and they can short some more there.
Shorting all at once not only hurts other investors of this stock, but it also hurts those that try to sell on opening day.. by only shorting small amounts at certain times, we can maximize the amount of stock profit for this company.
The disadvantage of this method of course is you might not be able to sell your stock for a while until more investors come into this company...
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