Protecting inverter-interfaced microgrids is challenging as conventional time-overcurrent protection becomes unusable due to the lack of fault current. There is a great need for novel protective relaying methods that enable the application of protection coordination on microgrids, thereby allowing for microgrids with larger areas and numbers of loads while not compromising reliable power delivery. Tools for modeling and analyzing such microgrids under fault conditions are necessary in order to help design such protective relaying and operate microgrids in a configuration that can be protected, though there is currently a lack of tools applicable to inverter-interfaced microgrids. This paper introduces the concept of applying an optimization problem formulation to the topic of inverter-interfaced microgrid fault modeling, and discusses how it can be employed both for simulating short-circuits and as a set of constraints for optimal microgrid operation to ensure protective device coordination.