All that needs to be done is for new shorts to come in and short the previous shorts. They would make a lot of money, and do the current shorts a favor and put them out of their misery. I'd do it right now, but they already know their days are numbered- and low digit!
Even with bad, really bad news from the company, this could go to $5/share EASILY, just because of the current short position. They cheat, you beat them at their own game. Simple as that!