The Impending War Against Short Sellers, page-75

Let me explain this in a simple way:
If you buy shares @ $500 and they get shorted down to $150 but you think they should be trading @$1,000.

it means: not a single pension fund, hedge fund, billionaire investor, larger competitor agrees with you. They don't even think that $200 is undervalued and cheap!
If they did: they would buy anything short sellers throw at them bellow $200 and wouldn't stop even if short sellers throw $trillion of shares at them.

Any one of them can wipe out short sellers. Hence why stock market and good companies have been rising ever since markets were invented and despite shorting.
Companies that mine SHs pockets, aren't profitable or are badly run don't; not because they are shorted but because they are run badly and nobody sees them as good opportunity for investment even when they trade at F... all valuations.