The key assumptions to verify are:

Resistance actually holds rather than breaks.

The post-pump structure confirms a lower high/reversal.

$2.20 is a predefined invalidation level.

$1.60 is a target rather than a guaranteed outcome.

At 10× leverage, a relatively small adverse move can create a substantial loss and liquidation risk, depending on margin and exchange mechanics.

I wouldn’t treat the fact that other shorts were squeezed or closed at a loss as evidence that $MOVR must reverse. Those are separate positioning observations from confirmation of a new downtrend.