GNK shorted shares are one third of all shares outstanding on 6/1/2013. I agree that if the PPS get above $2, the short squeeze will push it much higher. This is very possible if Cape rate stabilize above 11000.
Rates normally rise for 30 to 40 days before they turn down. From 2012 jan there are multiple positive price divergences on BDI, wave analysis also tells bottom is in. I expect rates to reach 2500 bencfore halting. That means that GNK will have pos cash flow and ship values will rise considerably.