There is no rational reason to ever short this. The funds that are shorting this deserve to be liquidated for being so foolish. At best you can only double your money with thirsting , unless you keep adding to your short. Losses however are unlimited. Too many people think that they can make a fortune shorting, like in 2008. But the reason why a movie was made about those guys is because success at shorting is so rare and difficult that when someone does it successfully , it is big deal. No one makes movies about people who buy and hold stocks.
"There is no rational reason to drive a car. The most I could gain would be to get where I'm going faster, but the downside is unlimited (I could die in a car crash)."
Just because a bet has unlimited downside and limited upside, that doesn't mean it doesn't have positive expected value, and would not be made by rational actor.
