If all 7 million shares covered gradually over a 20-30 day period, the stock would probably go north of 7, maybe even 8. But thats not how it works. Not everyone will cover, and, in fact, some will short more as the price goes higher. It's the opposite of someone going long at $5, and then when it goes down to $4, they dont sell because it dropped, they buy more. Shorts do the same thing in reverse. If Management executes on their business plans, and I see nothing to suggest that they won't, the people who shorted below $5 and don't cover will be on the losing end of the trade. Now, people who short it at $7 might make a few bucks when it pulls back. But I think anyone shorting because they expect the company to disappear is going to get crushed.
The run up from $4 to $5 was short covering. I have no doubt that the next short interest report will show a decrease. Of course, if the price climbs towards $6 before anymore significant news, there might be more shorting.