At the time of the fork any one who is short bitcoin on Kraken (and I imagine any other exchange supporting bitcoin cash) will be debited an equal amount of BCH.

example:  margin sell (short) 10 XBT/USD = -10 BCH (short xbt, long usd)

Because of this, there is absolutely no way to break even off of a Bitcoin short, let alone profit.  Essentially, this is going to force everyone who is currently short to close their position, which obviously means they have to buy bitcoin.  All of this demand will almost certainly cause the price to rise, no?

In theory we should be seeing a pretty sizable short squeeze prior to the fork.

Or am I missing something big?