Not so. If you short the stock, there will be a buyer to buy it. So in the case of BO, this buyer wants the money for his stock, someone needs to pay for it.
yes agree when one BP is doing all this and buying at the end including the shorts like GSK did on HGEN on their Lupus drug that AF was bashing all its life; but here DcVax is a platform technology and every oncology BP like Roche, Bristorl, Merck, AZN wants it. I think naked shorts are toast. FlyFishingStocks call it Volcano burning them.
If BP is the short position and said BP buys the company then they will avoid a squeeze, but they will still be forced to cough up $ to all the counterfeit shares.