The only rational position on down earnings after a 200% spike is a short one. If you are correct on some new executive turning things around you will be rewarded, unrelated to anyone who bets the other way.
There is no reason for a short squeeze to occur since there have been no fails-to-deliver. The most likely explanation for the recent rise in short interest is the conversion of preferred A shares and the exercise of warrants and since that appears to be over I’ll predict the next several reported short interest will be on the decline…