Fibrocell Science Inc (FCSC)

[DewDiligence]

The investors are "long" because they are now holding restricted shares that can't be sold for a year, for which they paid .90/share.

Wrong. If the “investors” maintain their short positions for the duration of the restricted period, they are flat, not long. It doesn’t make any difference to a short against the box whether the shares are restricted or unrestricted, so your follow-up post was a non sequitur.