Yeah, my point is there is a (very?) small probability that this...

Yeah, my point is there is a (very?) small probability that this could go over $2 dollars, why would you expose yourself to such a risk given that it would probably ruin you, even though the probability is small. I see spec stocks as betting penny's to win dollars, shorting a stock like this now is like betting dollars to win penny.

While I have no special insight on this, perhaps their is an automated strategy out there to short sell winning stocks and buy up loosing stocks, a sort of mean -reversion bet trade. Not smart to leave the computer running over night in this case me thinks!