I think there are a couple of points here that explain alot of the fear mongering and also the potential benefits for a R/S here
1. Realize shorts are concerned and rightly so. There has been little volume for them to cover recently (no one is selling) and their attempts to create fear through a few down days hasn't motivated longs to sell.
2. Result of that is the fear mongering of the R/S and a subsequent price drop. They will of course attack right at the R/S to say 'see we told you so' in order to try once again to find shares to cover.
3. The problem is, many shorts were betting on the need for dilution post R/S which is quite typical, and obviously causes a price drop naturally. In our case, once the Quarterly came out, they realized this IS NOT going to happen, so their bet was wrong.
4. Now, what may benefit us, is as the R/S is instituted, an accounting of all shares is done, any naked shorts will be outed, this is also something that worries those playing games. (which may be why we are seeing a move up right now).
5. In addition, realize, most of the shorts are unhedged AND shorts love very liquid stocks with a TON of outstanding shares. With the R/S we become even less liquid than we are now (with no one selling) and very few outstanding shares, it technically is now 'harder' for shorts to cover - this can often cause the move upward post R/S. We already have few longs selling, in order to buy post the R/S a small amount of shares will have a disproportionate impact on share price vs prior as there are simply less available shares (common sense). Ie buyers need to 'bid up' - it gets more costly to cover post R/S if there is no sellers (and we see no sellers right now if you look at the volume).
6. As, mentioned in the prior example good news always helps also :)
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