What's the difference your doom and gloom scenario only plays out if Markman fails? Obviously we all already know that if Markman fails WDDD will fall. It was structured to be good for the company after a successful Markman.
I think it's you that's not understanding, explain how this is so hurtful? The most they could short would be 1.2 million and then they'd have to use the .35's to cover.