"The amount of money they’d need to back that would be astronomical and the risk greater. "

I doubt very much companies like KBM are required or need funds to back their short positions since the shares they need to cover those short positions are already available when they convert the notes into shares. Fools like IGLOW and dipshit work for the toxic lenders and may get a short position as pay for services rendered. But they never expected to be trapped in those positions be the actions HJOE took.