What are the benefits of hedge funds to the economy?

Is it customary for most hedge funds to employ shorting strategies against their own holdings? For instance, consider a scenario where a hedge fund owns around 71 million shares out of the 84 million available shares in the float of Allogene Therapeutics Inc. Alongside their ownership, they have also shorted 42 million shares, equivalent to approximately 50% of the float. How does this practice impact the economy, and what are its potential benefits?