IMUGENE CHART. TA only, page-18682

Can someone smarter then me explain Paul Hopper's short hedge in further detail please? @slick says it's a 100million shares (I think) which I'll admit I was SHOCKED at how large the amount it was.

With my limited knowledge (please correct me if I'm wrong) I understand some investors short their own investments to satisfy banks or other lenders in case the share price tumbles. It's essentially used as a 'security' to satisfy the lenders in case their portfolios nosedive. Is it common practice for founders to short hedge their own companies?

For example if 'Saul' needed some cash to purchase a waterfront $10million mansion *zing*, the bank says they want $2million cash deposit. Saul replies "I don't have $2million in cash but I do have $100million worth of stocks in my portfolio which could soon inflate to 1billion shortly".
- Bank "Perfect, sell 2million $ worth of your stock and we can proceed"
Saul "I can't sell my own company otherwise it will look really bad to my investors. Many will lose confidence and sell or short the company and the share price will drop dramatically if I do so"
- Bank "No mansion for you then"
Saul "What else can I do to secure this deal, the auction is TOMORROW!"
- Bank "We will accept $1million cash instead of 2mil if you open a 100million stock short as a hedge"
Saul "Where do I sign"

So if IMU Stock price is currently $1.00 the banks and Saul's bank accounts would be very happy. If the stock tanks to say .10cents then his bank account would look horrible, and the banks would be fretting thinking Saul could be filing for bankruptcy soon (not that they'd care all they want is their money). So at .10cents a share, the 100million short hedge keeps the banks happy and off Saul's back because it is their security deposit if the company fails.

If IMU's stock were to rise to 2$ then Saul could use his immense holdings as collateral again, this time with another lender. Take those funds and close out his short position. Reducing IMU's total short % further increasing investors confidence in the stock. Investors big n small then buy more stock pushing the price further higher!

Am I on the money here or totally off my rocker?