Once Woodford put in $80+ MM into NWBO, it has become clear that neither side (long/short) has an information advantage. It is just a matter of risk, comfort, and willingness to believe in one's own assumptions that will dictate each individual's actions.
In the unlikely event other large institutional funds with short positions "knows" something else, then the next question is if that additional information is even relevant and could impact stock price.
On the other side of the coin, if there is some information out there that is RELEVANT and IMPACTFUL, Woodford should've uncovered and assessed it into their overall risk profile before making the most recent $40 MM of the $80+ MM investment into NWBO. (That is unless Woodford has been extremely lucky in past investments and has no skill in conducting proper due diligence ...)
Thus, I don't find these numbers troubling at all. This rise in shorted shares can be explained away by a number of items:
- Previous short positions could be hedged by warrants / calls
- New short positions are short term technical trades (hitting a critical resistance point), or valuation trades, etc.