Markets don't price efficiently for information. They instead price based on information and the power of the players in the market.
If a company is heading to bankruptcy AND enough large players in the market keep buying it's stock, no one can profitably short that stock. And this is a rationale thing for large market players to do if the stock falling would meaningful effect them.

https://youtu.be/NufJ7g63KSY?si=WGkKh6zYY7QsxUml