how will the shorts play out 2 ?

My Original question was based on an if situation. IF lyc was to be seen as looking to go belly up. How would the shorts play out ? By this I mean there are a fair few short positions held in LYC at present. My understanding is that for these positions to limit their loss they need to buy the stock back. If this is then true would there be see some sort of death throws rally to cover these positions.

I, as I assume there are many LYC holders new to this kind of game play any constructive comments on how a scenario like this would play out would be very much welcomed.

I'm sure there are some wise owls out there that could shine some much needed light over the rest of the flock on this subject.

Thx Bazz