I'm thinking that the 200 million shares that were added to the float through creditor selling sparked the shorting. It makes sense that if you are a market maker and you see the float increasing you would assume that the PPS is going to drop. What a great time to short right? The thing is, the PPS didn't drop....in fact it is still going up and the market makers that evidently shorted all of those shares are not finding the opportunity to cover without taking a loss. IMO, we're beating them at their own game....for now.
This has all the makings of a serious short squeeze IMO. I'm assuming the the float is now 269 million (or close to it) and not increasing. Shares are locked up and sooner or later one would think that the shorts will have to cover. If/when this happens look out above.
Just a theory and not necessarily what is happening.