From my perspective it is all up to the regulators at this point. Are they still captured or arn't they that is the question? The good news is we will soon have the answers.
You're leaving out the third possibility, which is also the most likely. And that is that Bryant is just stringing you all along with his gibberish. Those internal emails from Etrade are not proof of any gigantic short position.
As always, you ignore the inconvenient fact that it's the company that's being investigated by the SEC. The company has demonstrably lied on a great many occasions; why should anyone believe what Bryant says now?