I like your optimism but don't think managment is that smart. CEO is selling shares on a fixed schedule and I'm sure he'd prefer to be selling them at double this price as it was back in August. And I don't think the shorts are adding to their positions at these prices, but merely validating their positions. Sure, a solid 4Q will help, but I don't think they were sand bagging on the earnings call. We could all see the decreased margins and increased G&A expenses at 3Q.
CEO only sold his shares once....40K shares - he still holds a lot more.
There was no insiders selling since it started falling of the cliff. I am hoping for a bounce and kept adding to my position. In the long term it will pay off....just be patient and don't fold under short manipulation pressure.