When HKN Closed at $10.54 on 5/30/08, the Short Interest was a mere 20,911. As you would expect, as HKN hit 52-Week High's the Short Interest increased ... but from 6/30 to 7/15 Short Interest decreased by 62,621 shares, on low Volume, while Price was decreasing:
Short Covering in the Open Market should make a low Volume stock increase. Now if the Short Position was not being covered in the Open Market, but covered by Exercising Warrants, there would be no Open Market Buying of shares to cause the stock to increase.
HKN has been below $12.77 since the last report on 7/15 ... so I would assume the remaining Short Interest is non-Tailwind, so HKN should benefit from it's being Covered!?!?