wrong kind of shorting there hombre lol
What you are referring to is the pennyland 'unicorn' type naked shorting BS haha
This is real shorting "Against the Box"
VIA restricted stock, or Preferred shares:
Short against the Box. Investor fully monetizes restricted or clean stock, locks in price, has use of cash proceeds during the term of the position, and retains control of stock; investor runs the risk of borrowed stock being called away, but risk is mitigated by deliverability of stock held as collateral; presently not a taxable event but currently being reviewed and subject to change by the Internal Revenue Service.
JMO