"They incorrectly listed the shorts positions to avoid detection"
That is not what is says does it. I know you would like to believe that that is what it means...but it doesn't.
None of the regsho violations they report "hide" a short position. The FTD's still show up. Sometimes I think these SEC actions are like a Rorschach test for penny investors in figuring out what they "see".
Some people would probably be embarrassed about spouting this nonsense if they actually understand how trade reporting works.
But if you are interested in understanding you can start here: