You contradict yourself again...
"...We can agree that the shares are revoked, that's obvious.... and all of the shares are assigned a CUSIP # just like the long's shares are that sits in their accounts. Difference is that the shorts are waiting on bankruptcy. When bankruptcy doesn't come....those CUSIP #'s that are still "related" to LAHO will get attached to a new share, long or short, once all classes of shares are re-issued..." Up to this point you were some what on track or tracking...However, this is where you are missing the point...
To continue, you said, "...Those that are short...still must cover.... Period. Plus pay that daily lending fee..."
The shorts cannot cover because they will not be able to match the CUSIP of the stock they sold short or naked shorted. More so if it was Naked Shorted, because not only the CUSIP does not match, there are no shares to match the amount Naked Shorted.
In order to cover their short, shares borrowed are returned... But where are those shares if they were revoked? It becomes a Failure to Deliver. PERIOD.