I would not be surprised if your friend's model, that there are 1.2B naked shorted shares of NWBO, is true. It is speculation for me at this point, but that extent of manipulation would not surprise me. Why? Because the stock price is so far unnaturally removed from the underlying value of the DCVax platform. IMHO, NWBO today, prior to regulatory approval, the value is at least 5X to 10X higher than the stock price. After RA approval, the value should further do a step value increase.
That equals a short position of $880M today (1.2B shares X $0.7385 price), not sure if that is a large short position for major hedge funds but the exposure to loss for sure is astronomical. And the years pushing down price and against an expanding investor base relying on published successful Phase 3 clinical trial results, that requires lots of shorting activity. So I would not be surprised at all of the required scale of shares shorted to keep price down.
Consequentially, I would not be surprised of a corresponding mega, short squeeze scenario either.