Not really a good example . He probably only had that one stock is his account . No other assets either cash or other securities in his account may promp an immediate call . But normally you have 3 days to cover the call .

How a Short Seller's Account Went to Negative $106K

https://www.investopedia.com/articles/investi...e-106k.asp

Any dividend would cause covering, which would cause margin calls, and more covering, and more covering... $2 may be a bit much, but it should be considered. Ideally when the short interest is extremely high.