This is a great explanation. I started to question about the borrowing until someone cleared it up. I was a bit concern that they would be "borrowing" my shares.

So it seems a lot of risk involved as I now seem to understand the "cover" part. If the share skyrockets, they have nothing to "cover" and will end up paying a loss or a tax?

The basic understanding as you explained is clear, but more questions comes to it. All I just would like to know is what hurts them the most?

It makes a lot of sense why there would be so many people "bashing" the company and trying so hard on it. They know a lot of people will go to it buy shares, and they know it is going to do well...so they take advantage of the new investors. I'll admit, owning 1.56 million shares, and I'm a little over 50% in the red may have been lost to the shorters. But very confidence that it will go up.