If the share price keeps falling then yes. In the case of high demand stocks, HF strategies sometimes short, then cover later but ask MS or whoever their PB, to hold on to the stock so they can short again at another time. The HF has to continue paying the borrow fee, even though they have no economic exposure, but this is weighed against the possibility that borrow will be unavailable if they give it back.
Banter and General Comments, page-4387
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