Thats because of a tremendous volatility. Of course eveyone thinks that shorting a damage project could lift their profits high but there are factors whom we cant anticipate like possible whale manipulations. Of course these guys are watching the long and short positions and might chance to favoe which are those gonna lose more. So this possibility is also can, I wonder how the company can handle that kind of losses.
I agree with you that when Luna started falling badly, the investment of many people sank, but there were very few who made a lot of money with future trading by opening short positions with high leverage. However, after the launch of LUNC. People did not trust it as much as before due to increasing in its supply and declining market cap, everyone thought that a short position should be opened on it so that it could make more profit or reduce its loss. Now here is a common-sense thing if everyone will make a profit then how will the market run But people, as usual, fell back into the whales' trap.