One issue with this is do we even have any evidence somebody can reliably short Bitcoin at the level a government would want to? It seems hard to believe a government could do more damage to Bitcoin than just declaring that it's banned in their country, anybody using it gets {significant penalty in their country}.
So the claim is they'd be doing something like these attacks? I just struggle to believe that's the most effective way for them to deal with the problem, when the US Government coming out with "Bitcoin is illegal due to {plausible sounding terrorism story}, possession is a felony" would utterly tank it overnight.
