You obviously don't know me investorman. I've shorted stocks on several occasions but have never been forced to cover if the share price dropped too much as you portend to suggest. Sure it makes sense to cover a short position if the price falls a lot to lock in profits, but greedy shorts won't necessarily do it in hopes that the share price will sink further. However, you can be forced to cover if the stock goes against you or too high, but when depends on your broker and how large your account is. If your broker forced you to cover your short position as the share price was dropping I'd change brokers in a hurry and then report them to the SEC.