Shorting the terminals creates a situation where the same voltage being generated by moving the cone with your finger, is simultaneously putting voltage right back into the coil resisting this same motion. As a result it moves hardly at all.
Is that why it works? Makes sense. My assumption was that with an open circuit, only voltage is created and with a closed circuit, current can flow and the internal resistance of the wire and speaker eats up the power in the circuit. I hadn’t put too much thought into it. I think I like your explanation better.
If the speaker is sealed design then you have pretty much turned it into a closed box. But if it is ported then you have created a speaker sized Helmholtz resonator.
That would be a good thing right? Or is it only a good thing if your room has a nasty resonance peak at the absorbing frequency of the shorted and ported subwoofer?