The company can't say anything (good or bad) until the Audit committee finishes their work in mid-February. So there is a news vaccum and when the bulls make up stuff about reporting earnings, settlement, etc. the stock is bound to move up, as it is now. But at some point, the bulls have to deliver, and in mid-February when the audit committee concludes that earnings need to be restated, the music dies.
Perhaps. I just wanted to clear up the common misperception that the shorts are in pain right now. If they are long a call against their short position, their losses are capped out no matter who high the stock goes, but they get all the upside if there is a restatement.