Actually, No.
You short 10,000 shares at $4, you RECEIVE $40,000 in your brokerage account.
You cover 2 months later, buying at $1/share.
You have a 300% gross profit. or $30,000.
Yes, you have the interest costs on $40k perhaps (might be a few hundred $) LESS the interest you got on the $40,000 sitting in your account (or maybe you bought another stock with that money, one that went up and made even more than 300%)
It's exactly the same as if you bought at $1 and sold at $4, plus the small additional carrying costs, except that if you buy first, you're OUT the money and can't use it to make money elsewhere.
And from the short position during the pump, it looks like a few shorts did just that.
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