If the shorting is with 'real' shares reducing the float would indeed cause a scramble for cover. I agree a buy-back would be great.
The inference was that there were more shares in accounts than the amount printed. (think divvy) If that is the case, they can outprint ya.
I really have no way to intelligently comment on NSS - except to say if it is possible (and it is) someone will find a way to get away with it.
Again, doesn't matter what I think, MT is running the show.
ps - NSS might not even be the reason behind the reluctance to begin the buyback, just one possible scenario.