Seaquestor - If MM`s are ``short`` a stock and it gaps on them they are caught in their short position of either buying at a loss or trying to cover the short at a later date on a decline. They frequently do lose money that way. It is their desire to balance their accounts by covering at a break even point, thus they often short a stock causing it to decline to a point (or ``gap`` in this instance) where they can cover.