I suppose that's possible for an already distressed company under financial strain desperate to sell itself to avoid bankruptcy. But I'm not sure how that would

I suppose that's possible for an already distressed company under financial strain desperate to sell itself to avoid bankruptcy. But I'm not sure how that would work on a profitable company. No board of directors would approve selling itself for an short-driven discount. A takeover of a profitable company involves a premium, not a discount. A profitable company can wait out a short position. Hell insiders of a profitable company would be buying shares in droves in anticipation of crushing shorts.