My 2 cents is the large short holders intend to hold their breath(s) a good deal longer. Although many institutions clean house for End Of Year (mainly for taxes), I'm not expecting Zillow's current price levels to change much in December (things seem to be in a channel between $25 and $29). Ditto January (yes, Z does have it's moments of volatility, however, I expect the average line to be somewhat flat). ** But there are some interesting large positions (relative) for February -- maybe Z gets that someplace every Q, or maybe it's a foregone pre-programmed intent to cover.
As for other threads here about Subscribers and Users --- I honestly don't feel Zillow is hungry enough to do what it takes to grow/accelerate their base. Nothing screams out "We want you as a customer!" So what are those 500+ employees doing every single day to get and convert traffic? I could care less if they lose money in 2013 ... but they've GOT to demonstrate that they're growing, and they've got to prove that the growth is because Z uniquely (thru IP) solves a genuine business problem (as opposed to trickery or fud).
Get Agents & Underwriters signed up now, do it by entire offices, and entire franchises, and target the regions of the country that are on the upswing w.r.t realty valuations. Then pay the costs to fan 12x the QUALIFIED traffic directly to the relevent content on Zillow. Use the next 60 days to fix the last 180 days. You ought to be plenty incentivized, but you need to prove you have the chops to pull it off. And while you're at it, fix up those speedbumps in your UI & SEO called out in my other note on this board.