Shorts are guaranteed future BUYERS. Lower short interest means LESS future pent-up demand for shares. The fact that the stock has been declining at the same time as short interest is falling tells you that a lot of longs were selling. There had to be enough sellers to overwhelm the buying as shorts covered.
Dude - how much did you lose today ? You are getting delirious in state of denial. Yes, the money is gone. Deal. I guarantee you that FSLR will get anywhere near $30 tomorrow. I can see $26.50 tomorrow though and $19 after the Analyst Day.