During a short circuit event, the current will attempt to increase to the maximum available from the supply. The controller will respond as follows: 1) The output voltage is pulled to GND, 2) The load current will then surge towards the maximum allowed by line impedance and inductance, 3) Once the current has exceeded the limit, the controller responds by pulling down the gate voltage to the MOSFET, shutting it down, 4) When the current is below the threshold the gate will begin to rise again and will hold the current at the limit until the TIMER expires. Then it will shut down the MOSFET.