Why isn't this possible in a PoS system with bonded stake?

1. Short the coin
2. Pay 100% of on-line stakers to transfer their stake to themselves in one common block (12 o'clock midnight, for example)
3. The chain auto DoSes itself as no blocks get produced until the stake bonds again post transfer
4. Profit

How extensive is this damage? Can the chain recover at all since no blocks can be produced?