w/o seeing you on the bike it's just a crap shot, but i'm guessing your legs aren't that short. You should have like a 10-15 degree bend at most when legs are extended. Also your handlebars are rolled to far up. Drops should be parallel to the ground. You will get more flexible the more you cycle. Stretch your back, neck and legs everyday if you can. Maybe he just set the bike up that way until you get more flexible.