JB, I may be wrong, since I don't short stocks, but my basic understanding is that shorting a stock, similar to selling a stock, has the opposite effect of buying a stock, that is it drives the share price lower.
As the price continues to drop, a growing company that is not yet cash flow positive will experience difficulties raising funds to grow and run the business without causing significant dilution, driving the share price even lower, a vicious cycle ultimately leading the company to declare bankruptcy due to lack of funds.
Also note that my exact words were "perhaps even contributing to it (bankruptcy) by doing so (shorting)," thus not indicative of strong conviction, as alluded to in your post.
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