There is no point shorting something that is already falling. Usually shorts gather up on appreciating assets.
Yeah, I guess I could have phrased my statement better--I have no doubt there are fewer short positions now than there were when MSTR stock was a few hundred dollars higher, because at this point the less risk-averse short sellers have likely covered. Last I checked, the stock had rebounded from yesterday's disaster, which was probably just that.
And then just now I woke up and saw that bitcoin had fallen further to $21,500. Yikes! I'll definitely be watching the stock tomorrow.