I'm not a wizard, nor can I see in the future: so, if you are searching for this kind of approach, you should surely ask someone else.
I'm simply a curious men and, as a curious men, I always try to see the TWO face of the truth.
About LINE, I tried to understand the reasons of the short sellers: honestly I never found something I could understand. It's surely my fault, and I beg your pardon for this, but strangely I've clearly understood (or, at least, I think so) what LINE does "edging".
EXAMPLE*:
1) They buy something for year 2016 at 80 and sell it for the same year at 100.
2) Partially, they buy something for year 2016 at 80 and write put (they buy the right to sell) at 100 for less then the difference (20).
*Take note that year 2016, and the number indicated (80 and 100) are only examples, but this is their hedging as I have understood it (cost of refining included in the buy zone).
WHY THIS KIND OF OPERATIONS IS SUPPOSED TO BE WRONG?
Someone talk about "accounting practice and/or principles" but, for me, you can count as you wish, but the difference is always (near) 20 in a column (less cost) or another (more income).
Anyway, to help your reasoning, I tried and found here at ir.linnenergy.com/tools.cfm the LINN's Hedging Strategy Explained: you can surely find here more useful information. Obviously I cannot guarantee this strategy is effectively in use at LINN but, if it is in use, and if I have correctly reported it, I don't see ANY fault in the reasoning.
I could have finished here but, also if I'm not a wizard, I'm (or I hope to be) a rational men. As a rational man, with these kind of information, for me what's really happening here is simply stated: someone want to buy LINE at cheaper prices (or prevent LINE from buying BRY).
DISCLAIMER:
I'm not an expert, so don't take my words as complete truth, nor as an indication so buy or sell any security mentioned here. Anyway, no one can prevent you from reasoning: no one BUT YOU. Take also note I'm long in LINE.
Disclosure: I am long LINE.