There has been a tendency for financial institutions to blame short sellers for a declining share price. I don't think that's accurate, which I will get into on another thread one day, but here is an example that disproves it.
HSBC, who I serendipitously bank with over here, happens to be a very conservatively managed bank, sourcing the majority of it's funds from savings. Whilst Northern cRock of sh!te, Bradford and (debt) Binge-ly, Para-gone and other crappy derivative funded banks have crashed in spectacular balls of flames, HSBC continues on it's inexorable rise.
Sure, there has been a couple of heart stopping dives along the way which may or may not have been precipitated by shorters, but value wins in the end.
Sell off good companies too cheaply and the smarty value investors are all over it like a rash.