If/when it re-opens, the initial trading prices will tell the tale.
If it opens at a dollar, then you know the theory has merit because the market-makers will be wiped out unless they can get covered as low as possible, and a dollar would certainly entice a few sellers, but if the short number (through whomevers fault) is completely inaccurate, then the price would rise very rapidly because massive losses will be incurred until they get flat, and yes, many would not survive a scenario such as this.