Yes, that is part of the fiction. If the facts don't support high short interest, then just invent naked short interest that doesn't show up in data! When all else fails, make stuff up!
Owning a pink like RGPB is all about making excuses. "Well my stock is down 90% from the highs, but it doesn't count because there is this invisible man shorting, which results in no short interest figures. See? There, I 'proved' it!"
To you and me this is whacky, but this is every day logic in pinks like RGBP!
GO CANARIES!