I can't see anything (or anyone) saving SHLD, especially with the terrible condition retail's in lately. But in the market, nothing's risk free.
Buffett has said that it's easy to find overpriced or failing stocks to short. But getting the timing right is hard. Put another way: "The market can stay irrational longer than you can stay solvent."
We're witnessing a textbook example of the dangers of shorting. I'm really good at spotting bad investments, but I never short them. I just avoid buying them. Sometimes I'll hang around to watch the bitter end.
"Investments can stay irrational longer than you can stay solvent"