Can you buy a new house then short sale your other one?

Due to economy crisis, interest rate fell down and it’s a buyers market. My friend told me that his cousin bought a new home with better interest rate then after they closed, he short sale the other house (1st house) that he can’t afford to pay (less value and higher int. rate). Sounds like a good idea…is this true, legit and if somebody did it let me know? Thanks

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