ohmhead,
A failure mode of a short on the load side on the UPS module input breaker, would require the input breaker to clear the fault. Yes the module itself will limit fault current to downstream faults (downstream of the module), but internal faults must be cleared.
My point regarding the static bypass is that during a fault downstream of the module, the intelligence within the module will attempt to go to bypass and clear the fault with bypass current (not limited by the rectifier/inverter). so the bypass transistors, must be capable of withstanding the fault until and upstream OCPD clears it.
Jim,
They understand it, but most of the major manuf. say that the UL standard for UPS's doesn't require short circuit ratings, so they do not test it. APC did do some testing for a particular project in NYC because they were very "hungry" and wanted to completely comply with the Contract Specification.