I think you need to realize the short covering has been completed. Now there are new shorts. Its the switching of hands, these short positions. New shorts are luckier because they are shorting higher.
This will trade back to $60 in due time.
I think MS is not stupid to make the same mistake again like FB because they will kick them out of the coveted circle of respected Ibanks on wallstreet. They PT at $105 but they will probably offer the thing at low $60s when it trades back there. This gives more than double upside to look forward to.
If they try to offer this at $100 MS loses my respect immediately because they are repeating their FB IPO call.
Yes, the shorts definitely got taken out to the woodshed. Having said that, I rode the elevator up and now riding it down. I missed getting out at the peak to the tune of $20K, but hoping to make some of it back on puts I bought when I noted the squeeze is over. I'll never short this thing for a couple reasons. #1 - buying puts does not put downward pressure on the share price of a company I really like. #2 - puts have limited down side. I am sure a few shorts are at risk of divorce when their significant other finds out the retirement fund is back at start. Lesson learned from their pain, never jump on a bandwagon to short.