just what i thought they might try. issue enough shares to all the original share holders in proper proportion so that the short seller couls purchase from the company enough shares to cover his short with (for a nice fat and punishing sum of bucks), that money goes to the company coffers, spread those covering shares throughout to system so that we all have real shares, then r/s us all into oblivion again.
original shorter who caused this mess in the first place gets punished but still survives. the company ends up with a nice hunk of change in the bank, and we all disappear.