I am not short and I am not bashing. Your thoughts I think are not realistic given the recent news. This stock will have great difficulty going to $3 within a week. It's technical values don't warrant it. It is now fairly valued unless there is a major inventory write down, then this stock is overpriced even where it is now. Any potential buyout needs to happen quick before further deterioration. At the current scenario, maybe $2.50 to $4 per share buyout. The company is only worth what someone sees as value and right now some of their products would fit into some other company's portfolio, and that is why 2 or 3 times revenue might be paid. That is reality.
Regarding the shorts, they are not in trouble as most still holding probably sold at much higher levels and can afford to see a small run up before they close. They are not panicking at this level or even up to $3 as you say.
My concern is any mutual fund sitting here with losses and saying, that's it, not worth it. They dump and the stock goes down regardless of the logic.
Maybe we will see a return above $2 to $2.50 during the week, a dead cat bouce, but that may not even be realistic. Time will tell.