The short interest on this stock is a big fraction of the float so if you are straight up short the stock, then you are putting yourself in serious risk of the combination of a short squeeze and getting called out of your position at the wrong time. Therefore, if you want to bet against this stock, construct a position using options. I know they are less liquid, the premium is huge, and the spread is pretty big - so once you get your fill you stay the course. But you won't have to worry about these periodic run-ups. If you are already short, you might want to consider buying a long dated call option as protection or rotating into an options position.
Yes, just as I mentioned before in my post "The Bottom is Much Lower", this company has nothing going for it right now and should continue to trend much lower on a fundamental valuation basis. This stock deserves a low P/E ratio and a low expectation for 2012 earnings, meaning this stock should be in the low single digits. However, with short interest so high, even the smallest rumor or piece of news can shoot this stock up.
This is good advice in general and I use these techniques all the time . I covered my short here a couple of weeks ago. I think there is no upside but not much down either.This management team is one of the worst I have seen.