The people that I know that have a short position, now have that position boxed. They shorted the stock when they saw the rise in shares shorted begin. Now that the pps has fallen, they have offset their position with longs. They are unwilling to cover their short positions due to the lack of shares available to short.
These shorts (actually neutral) investors figure they are prepared for any of the following ... a bear attack on CCME ... a slow down or double dip ... disappointing news, company or otherwise. If any of these scenarios play out, they will sell their longs. If the pps looks poised to rise, they will buy more.
I don't play their game, but it is one strategy being employed.
JB
