I'm not exactly sure how you've determined that 1.7% of the float short is significant, and days to cover at 4.43, that is nothing, that is a lower short percentage and dtc than probably 95% of the stocks in existance. Don't get me wrong, i'm hopin the stock turns up substantially, but if you think that is significant enough to squeeze the price a little higher, you're wrong. It's gonna take good news, and good news only.
As an idea of what significant short interest is, look at one of my other stocks (HDTV), this is what is considered significant short interest:
shares short: 6,111,851 % of float short: 19.4% Avg. Daily Share Volume: 247,263 Days to Cover: 24.72
If good news comes out, the stock will go up significantly. The shorts will not be able to cover at anywhere near where the stock is now. There will not necessarily be that much liquidity in the shares for them to bid at. After all the stocks' troubles, most of the float is in the hands of long-term investors who are obviously ready to wait this story out.
Just an added (if not an enormous) boost in the event of good news, as i said.