If NIHD used the proceeds of its ongoing sales for a significant cash dividend I think shares would trade well above book value in a very short time. If the major investors pooled their money to issue NIHD an interest free (low interest) loan for a dividend they would see an automatic 50% return on their money as well as increased share value on their holdings. Never understood why this doesn't happen with highly shorted stocks.
Do you realize how capital intensive their business is? Why wouldn't they use the money to grow their business and permanently stick it to shorts, instead of a one time thing. You seem to think mgmt has to "protect" the share price and I challenge you to spell out exactly why.
I don't think management has to do anything. However low cost financing for a capital intensive business is a good thing. Getting an immediate 50% ( or 25% for a leveraged loan) return by the lenders is a good thing. Price swings of 33% to 100% is not a good thing.