I wonder if insiders dumping their shares has anything to do with this... As much as I like to believe that they all thought it was time to buy a yacht, it's definitely a red flag. Granted, it wouldn't make too much sense for them to dump their shares right before the stock gets walloped - they'd be opening themselves up for some litigation.
This error is due to the fact that, probably, you have not studied statistic. You cannot take a number and make it absolute, but you must use an indicator. So you have to compare short interest with volume.. the indicator is the short interest ratio (aka day to cover).