Short situations like this only work when you have a stagnant or declining stock price like this has been. I feel many buyers will move in when the threat of Google wiping out the jury verdict is removed. Shorts will not watch their profits erode in that scenario. Institutions will not be concerned with time-frames or appeal situations because Google will be going after a reversal of a jury verdict and a Judge re-affirming that verdict. Also there is no guarantee that their appeal will be accepted.
Long odds, they may try it but their chance is slim, I do see Google settling with Vringo if these events occur.
However I can see (shorts) re-entering their short positions under your scenario at higher prices but I doubt many of the 15 million shares now shorted will still be active, some but most not.
Market Data 
Markets 
AI
