Earlier today I wrote about the billion-dollar convertible bond Herbalife (NYSE: HLF) announced this morning. This bond is the latest salvo in the fight between activist investor Bill Ackman, who thinks Herbalife is a pyramid scheme and has wagered accordingly, and the company. Herbalife is planning to use a large portion of the new bond's proceeds to buy back its stock, trying to offset Ackman's recent upper hand. Just over a week ago the stock fell precipitously, to nearly 30% below the level it had reached earlier in January, amidst a senator's call for a formal congressional inquiry and reports of an investigation in China. In my earlier piece I suggested that several aspects of the convertible issue were even more designed to inflict pain on short-sellers than one might have initially suspected.