What happens when someone short a stock and it hits lower circuit. Will it automatically get squared off? Or I myself have to square off before it hits lower circuit.
In intraday
In such a case where you failed to square off your intraday short position till eod market timing , for what so ever reason , your short sold shares will be auctioned on next day of settlement (t plus 2 or t plus 1 as the case may be ) and auction purchased price , some penalties , brokerage , expenses etc minus your short sold price will be debited to you .
If it is T or Z group there is no auction purchase but compulsory square off of trade where your account will be debited with as high as up to 20-25% of market price and credited to buyer . same applies in case of other group shares where auction is there but even in auction particular shares ( which you short sold ) are not available .
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If I have shorted a stock which subsequently hits lower circuit, I should be able to buy back the stock at lower circuit without any problem, since there will only be sellers and no buyers. The article in the link you have provided talks about having shorted a stock that hits upper circuit and buying a stock that hits lower circuit. However, one should have no problem squaring off a long position when a stock hits upper circuit or squaring off a short position that hits lower circuit.
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Yep, my bad. Mis read it 
You should be able to square-off short position if stock hits lower circuit, as there will be sellers and you will be buying back the shares.
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