Price was 50, tycoon shorts it down to 45, sovereign fund starts buying until it's back to 50 (let's say they got average price 48), now price is back to 50, yet tycoon is short and if he wants to exit his buying will push price to 52.
So he literally allowed the sovereign fund to buy the shares cheaper, and he paid the delta.
Of course, now price might go up or down, we don't know who ultimately wins.