Here is nice example of a car where you basically don't need to shift in 2nd, or better to say, you lose too much time shifting from 3rd to 2nd, and gaining time if you leave car in 3rd... The Toyota 86GT has really sloppy manual gearbox, especially from 1st to 2nd, it needs ages, a little less from 2nd to 3rd...
On other hand, the Mazda 6, the 4WD diesel car in GTS is a short shifter all the time, you basically in that car never go over 4200rpm, because you will lose a lot of time doing so, it has no power there...
Then again, as some of the people mentioned here, sometimes short shifting is needed to hold car stable, sometimes even overrev is needed to not lose time in shifting... it all depends of track layout, situation you are currently in etc...
And if you really mean what short shifting is, it is basically shifting to next gear much much earlier where engine hasn't build up torque nor power (in diesel engines, you have torque from 1600-1800rpm), and overrev, even though in GTS you'll hit limiter is basically revving engine over it's red line (in real life damaging engine). And at the end, sweet spot of the engine shift is somewhere between power peak and 200-600rpm over it, but this also a lot depends on gearbox ratios, engine type, fuel type etc...
Short shifting is also used a lot for fuel economy in racing, you don't go to sweet spot to shift, but for example some 10% lower of it.
However in real life racing short shifting is usually, if for example engine revs up to 10k rpm, and sweet spot is at 8k rpm, short shift would be considered everything below 6.5k rpm...
Overrev would be considered everything above 10k rpm if ECU allows it (or engine alone)...
Cheers...