Not if they don't fail to deliver
I could be wrong, but if they can cover or deliver the shares within 72 hours, then it's legal.
IMO, they're hoping that the interest caused by today's report will ease soon, and that they can drive it lower and cover within the window.
That's why it would be great if the company could announce more good news tomorrow and Monday.
BTW, they were down to two MPIDs, BKRT and VFIN, when CSTI returned with 1 share, and ERTF put 100K on the ask at $0.125.
That 100K was taken rather quickly, and CSTI either pulled its order, or the next 25K in buys took that out.
We're back to two MPIDs on the ask.
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