Well first thing incorrect about this statement is that settlement isnt based upon 13 days when dealing with conversions. The SEC specifically provides exception to Rule 203 for warrants and conversions. The insider/financier/debtor has 35 days to deliver the physical certificate to their broker after opening the position. That is in fact what happened in 2012, PIPE financier sold shares while awaiting their physical certificate with the restricted legend removed.
This however wasnt one of those types of transactions as the TA clearly provided that there were shares converted to free trading before the big dump of 2 million shares over a 3 day period of time. Of course this will be easy to confirm when the Reg SHO report for settlement comes out, the FTD report for this period.
As to the Daily Reg SHO, it is meaningless data, it doesnt show anything of value, one can guess all they want but it is just a guess as to any short or open position at the end of of the day if any.