The term is rarely used, at least that I am familiar with in the US, but the times I have heard it used, the aircraft is parked on a ramp, away from the terminal building. This has always been close to a main taxiway, and away from the pushoff movement area around the terminal building.
The line crew have called it short parked, because the taxi is ...
"short parking" seems to be an informal European term for "short-term parking". So it's referring to the time a vehicle is parked, not the distance.
If I heard it about the location of an airliner, I'd think they meant that the gate areas were full and it had to be put somewhere temporary (and inconvenient) this time.