It is no coincidence that just as Whitney Tilson announced that he covered his short in Netflix the stock topped out. While he gave impressive and logical explanations for starting his short position and eventually closing it out, I believe what occurred is a lot simpler.
We are all just overgrown primates typing away at our keyboards. At the point of maximum pain that primate simply could not take it anymore. I don't know if he believes his own explanation for covering the short but I believe its bullshit. The reason I know this is that I have been there.
The difference is I recognize that I am just an overgrown primate and try not to get myself into those type of situations. When I look at highfliers like Netflix and Salesforce.com I know they will crash and burn but I also know that I will crash and burn first if I try to short them. I will end up not being able to take the pain and covering at the worst time, only to watch them in even more pain as they go down shortly after.