I think you will find that a couple of the institutions have sold out in the last 2 weeks and the float is larger than people think. That being said the panic was caused by 1 news story at debtwire. Since that story was printed every other news provider that is short has picked up the story and spread the rumor.
It could be true but the story was no different than someone here stating they know something we dont know.
I think tomorrow we will find out one way or another. Either the shorts cover tomorrow or the company puts out AH news that makes longs sad.