Actually, I did a cursory review of a number of different stocks in various industries to try and get a semblance of a bigger picture comparison.
I am inclined to think that 2.5M short shares is actually not that high. Perhaps (and big PERHAPS) a tiny bit elevated, but certainly not high... at least in comparison to other traded companies.
After looking at other traded companies, it appears that typical short interest ranges from 3 to mybe up to 5 days worth of average trading volume. KKD falls within this range (2.5M shorts, 0.9M avg volume = approx 3 days).
There was one company I found (RIMG) that has over a 100 days worth of shorts but seems like a "good stock". I found that to be interesting.