It depends on what happens. If the stock rises, you are. That's the entire point of this GameStop fiasco.

If the stock drops, the person holding the share is coerced to sell at a loss, because that's the nature of capitalism. But of course, you won't see it as such because "fair market value". But why is anything the market does inherently fair or non-coercive? That's such a childishly naive understanding of the real world.)

From Wikipedia:

Short selling is a finance practice in which an investor, known as the short-seller, borrows shares and immediately sells them, hoping to buy them back later ("covering") at a lower price, return the borrowed shares (plus interest) to the lender and profit off the difference.

The share is borrowed from person to person, and it has to be returned at some point. As in the GameStop case, shares sometimes get re-lent and shorted again.

That creates a chain of coercion. Now if the stock rises in prices, the chain collapses, as it has happened here. If the stock drops, some "sucker" is coerced to sell them, generating profits to people in that chain.

In any case, every single person in that chain is hoping to profit off the losses of someone down the chain.