I don't think he was putting it all down to shorting - though...

I don't think he was putting it all down to shorting - though certainly shorts will play a part, anyone who has gone to cash (and there are plenty of these) also want the market to fall. Have a look at Soros' recent comments in the media about the markets, he is also supportive of the Fed dropping rates. Why? Most likely he's been selling the dollar.

It made complete sense to me though I don't think it said anything about which way to trade. It may make more sense to just run with the herd and base your reality on other people's reality - if you're not in a position to sell your own. Post-modern markets eh?