If someone shorted 12,500 $HTZ at $4.00 (for proceeds of $50,000) and it later dropped to $1.00 they would spend $12,500 to cover their short position and keep the balance of $37,500
To profit from shorting you have to buy back the number of shares shorted....in your example, you would short 50,000/4 = 12,500 shares....in your account you would see a holding of -12,500 HTZ shares....when the price drops to $1, you should cover you shorts by buying back the stock for 12,500*1 = $12,500..
Your profit is 50,000 - 12,500 = $37,500
I hope this makes you understand the short strategy
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