I dunno about the Short Squeeze thing - that sure as been a popular refrain around here for a while.
But, I've been pleasantly surprised and encouraged at how Dex was hangin' in there while the broader markets were getting pounded recently. A low volume virtual penny-stock speculative play like DXM should have been beaten hard over the last few days, but did a lot better than I would have expected for the circumstances.
Maybe most of those who were going to sell have already done so, and most of the holders are waiting on Q4 and Q1 or other meaningful and relevant news. In the mean time, to me, it looks like it will continue to get #$%$-slapped around in a range on fairly low volume until there is news.
I am not particularly fond of predicting short squeezes anymore than you appear to be. My reason is different than yours however. Explaining the trading in any stock is difficult and DXM is no different. Having said that, there have been several monster rallies in this and the predecessor stocks over the last six years, monster rallies. Not to point out the obvious, but just last year SPMD went up five fold. If that kind of move doesn't disturb the shorts, then I don't know what would. So yes, the stock has been a major disappointment for the longs as you imply, but no, that does not preclude it from having a monster rally that is heart wrenching for the shorts, aka, a "short squeeze".
Again, this is not a prediction but rather a suggestion that a rally with the character of a "short squeeze" is quite likely. More importantly, the valuation of this stock remains at deep discount levels, rightfully discounting the troubles, but likely not reflecting the possibilities implied by 600,000 SMB customers and 2000 salesmen. As I like to say:
"Optimistic to the possibilities, realistic to the probabilities."