The beauty of JED's deal is that (if we have the whole thing correct) they have 6 million shares at a bit over 2 cents. They can sell those and then buy back whatever they want using the convertible debentures at the 65% discount.
I think actually short selling against the convertible debentures would be illegal, though I'm not positive and there may well be ways to work around it.
On the plus side, JED doesn't benefit if the company goes under, at least as long as they still hold debentures and/or equity, so they have a good reason to keep funding, but since it will probably require more debentures at large discounts it COULD lead to a "death spiral".
IMHO what you want to hope for is JED or another large investor decides the company will become successful and they hold their positions, i.e. don't sell and invest enough to keep the company operating. I think that will lead to very little volume, but if the company comes through, it would eventually lift the price significantly. Of course, IMHO, that's a very long shot.
'Tis better to be silent and be thought a fool, than to speak and remove all doubt. - Abraham Lincoln