The design point is that short sellers may still express a view, but may not accelerate a decline by hitting bids. It restricts the aggression, not the position.
Practically, short entries must be priced passively while the restriction is active, which changes the whole tactical picture for intraday shorts in falling stocks.
Example: prior close 30.00. The stock trades 26.95, down 10.2%, and the restriction arms. With the market 26.90 / 26.94, a short sell at market is not permitted to hit the 26.90 bid. It must rest at 26.91 or higher and wait to be lifted — so the fill comes only if buyers appear, which is exactly the point.
Related: regulation-sho, short-selling, short-exempt-order, circuit-breaker