I don't ever think about short squeezes. Shorts are usually fairly hedged and no how to exit when things are down.
I do think being net short BKE is a long term losing proposition. You are right about FBR and GS.
It doesn't matter in the long run. Made some nice money buying cheap from shorty in the past and in the long run share appreciation and dividends have rewarded me well and I see no reason that won't continue.