From this document on page 56, it states that

Losses from short correlation through variance dispersion can occasionally be very large, especially since the trade becomes short volatility following adverse moves in correlation.

I cannot see how short correlation through variance dispersion becomes short volatility.

From this document, http://quantlabs.net/academy/download/free_quant_instituitional_books_/[JP%20Morgan]%20Variance%20Swaps.pdf, on page 56, it states that

Losses from short correlation through variance dispersion can occasionally be very large, especially since the trade becomes short volatility following adverse moves in correlation.

I cannot see how short correlation through variance dispersion becomes short volatility.