A lot of shorts like to cover before earnings if they have profits. I think that's what you are seeing. If earnings are strong, they will stay away, but if they aren't, you might see them come back in and short it back down.
I'm new here, and I am hesitant to hold this into the close. Tell me why you believe there is no downside? I saw the analysts are estimating a loss of .46 a share. Are you confident taht they will beat that number?
If you see what happened with this company with Sinovel fiasco and the management got law suit for not releasing earning information properly. I strongly believe that they are very conservative in forcasting their outlook. Also they wouldhave announced it if there was any suprise. Also they cut cost significantly, got new customers. Altogether, I am very positive.