Taken from an article that was recently published regarding the run-up of Silver and the short positions in the market:
"Silver is experiencing the kind of demand that marks historic bull markets. Gains of the extent that it is displaying are evidence of distressed shorts being mercilessly attacked by strong handed bulls," wrote Chris Mullen of Gold-Seeker.com. "Keep in mind that these shorts are not weak-handed, having had their way with this market for many years but it is clear from the extent of the gains being produced that large, well-funded and determined buyers have come into the silver pit with a steely determination to engage their enemies. A large contingent of the silver bears are hemorrhaging seriously and are beginning to abandon the field."
Only the strong willed and determined Silver shorts will stay in this market as November is typically a strong month for Gold and the metals markets. When you add QE2, it bodes well for Silver going forward. The industries that use Silver for their products will also be taking note of the increase in the price over this year and may begin to purchase the metal now, instead of higher prices next year.
Even if Silver does pull back, It may find support at the first fibonacci level of 23.6 as it did in late October due to strong investor demand. In summary, the major shorts may be destined to lose a substantial amount of money, they just need to decide how much they want to lose when the eventually buy back.