Risk ... reward ... math.

Glad to see the shorts are Topic A for the moment. I'm not wearing a little tin-foil hat, but I wish more investors would get on the learning curve so we can help each other. I'm tired of waving the bazooka. There's puh-lenty of information, but unfortunately never enough.

The shorts are in microcaps for the same reason we are. The potential percentage gains are enormous. They just happen to be looking down while we're looking up. Frankly I don't understand your math. From X to Y, the lower the PPS between two points, the greater the  percentage gain. Sudden, incredible news? Noooooo problem. The shorts have the ability to cover at any time and/or manipulate the PPS down to cover any gaps.

Try reverse-engineering the manipulation. Check out FINRA's Disciplinary Actions in the microcap world. http://investorshangout.com/post/view?id=222856

And try to live through the tedium of some really important (but incomplete) info. Actually there's (sad) humor involved once you know the lingo.

http://www.sec.gov/news/otherwebcasts/2011/mi...11.shtml 
SEC Roundtable on the Execution, Clearance and Settlement of Microcap Securities
October 17, 2011

“They may be called ‘penny stocks,’ but victims of microcap fraud can suffer devastating losses,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “The SEC’s new Microcap Fraud Working Group is targeting the insiders and promoters, as well as the transfer agents, attorneys, auditors, broker-dealers, and other “gatekeepers” who flourish in the shadows of this less-than-transparent market.”