Hedge funds betting against the fortunes of China Evergrande Group got a reminder of why the indebted developer was once Hong Kong’s most painful short. After steadily reducing wagers against Evergrande shares in recent months, hedge funds and other short sellers rushed back into the trade last week – just in time to get burned. They nearly doubled short interest in Evergrande’s stock on September 29, a day before the developer rallied 19 per cent on abating concerns over a cash crunch, data…