The SEC filings state the Warrants as exercised and give shares outstanding for Q1 and Q2. This is a point awk has brought up a couple of times. What the outstanding shares report for Q3 will say is not something I am addressing, but the warrants were exercised.
The Warrants my have been exercised and held, exercised and sold (flipped), or exercised and hedged. If they were exercised and sold then 7.5 million shares poured in during the run-up of Q1 and Q2. It just doesn't look that way to me, and exercised and hedged explains the whole bit about covering naked shorts ... they would not then be naked.
Looking at the whole notion of venture capital it seems the successful ones buy into a PP (often hedging the placement on a near term run up) and the Warrants are the ace in the whole. They can be exercised at leasure, and with developing companies entering into the Russel indexes, shorted against to lock in the profits and disposed of at leisure with no real close monitoring.
The VC then provides liquidity to a developing company in the PP for a modest gain, and then effectively transfers the warrants to the institutional index funds as the company mktcap improves in a leisurely manner (and provides liquidity to MMs).
Again, just my thoughts. This way, well-healed venture capital provides for developing companies, and is handsomely rewarded without having to agonize of every little development at every little company.
The above content is my opinion.