Wave Systems Corp. (fka WAVXQ)

[rwk]

if the short position

was taken to hedge the shares obtained through the purchase of the 7mm warrants, than the short position would have likely been created in a gradual process mirroring the warrant exercise process undertaking in Q1 and Q2.

According to the short interest history, the short position was created at the time of the Russell indexing. The only way to combine the exercisors of the warrants with the creation of the short position then is to propose that the warrant exercisers went long the shares in Q1 and Q2, undertaking the risk of beinging long the shares for over 100 days, and then abruptly decided that the Russell rebalancing was the correct time to hedge the shares and knew that there would be enough shares traded after the market closed to meet their hedging needs.

Seems an unlikely path to me.