Yes and no. Probably a bad example. But, imagine:
You short 250,000 shares of ATRN at .075. That is a $18,750 investment on paper.
A/H news comes out that there is a buyout for $1.00 per share. The next day, ATRN opens at or around $1.00 per share. Suddenly, you're required to cover for $250,000. You suddenly find yourself at a loss for $231,250. That hurts, right?