Short position recently has been very low. OWC was/maybe still is under attack by MM. I know everyone says that but level 2 trading patterns show this to be easily documented. You hit the nail on the head with why is it moving up when PPS is moving down. I think there are some underlying drivers which might have manifested the technical in this manner.
As you mentioned it is odd to have such a divide. The course will correct itself to one or the other. Personally I think (especially with such huge pending news) that we will see a rubberband effect as PPS has continued to decrease despite where other indicators say we should be moving.