If my data is correct, short interest fell by 46% and is still about half the float (as you said). So this means that at one time short interest was close to the whole float! Wow!
Even with accounting improprieties, this is still a profitable company. I think a lot of bad news is already built-in. The best estimate I could find was a potential for overstating profits by 50%. This stock fell way more than 50% (from $90 into the $20's).