I have a hard time understanding this, for my/our

I have a hard time understanding this, for my/our education, how does this play out? we have a huge amount of shares previously shorted, that position can't really grow because the # of shares available to short is dwindling and therefore causing the borrowing cost to rise over 100%. Does this mean that for a new short position, the shorter needs the stock price to drop by over half just to break even? Does it mean that any current short position is likely to be closed to lock in the profit and not re-opened until the cost to borrow drops? If the short is closed, does that leave the window open for the SP to rise to something more representative of the valuation/potential of this company?

I'm just trying to think from the perspective of the shorter - what is there strategy? How do they manage this position? My feeling is that the desire to profit of a falling stock price is not what we are seeing, I think it is short positions opened at a SP that has not yet profited the shorter because of high borrowing cost and they are worried it could get much worse. I still have difficulty understanding how shorting is a good strategy with this, one EUA and they will loose so much more than they could ever make - why on earth do it?