Trader exactly not only will they cover but think of the brokers. They will force it and not pay the div for the shares they have in clients accounts. They will force delivery at any price to avoid that. They are not ones who sold short they bought the short sales shares for clients. They will demand delivery. That's why they call it a short squeeze.
Market makers will make it back with huge run and eventually having big crash. This is perfect storm for big run. They have to run it up big to recoup losses covering. It's why we see big crazy runs in pinks. They run it high as needed to stop buying and fuel crash.
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