its totally meaningless to watch short interest for this stock. Drop in short interest for this stock , only means that investors dont anticipate any news anytime soon. Serious investors dont lock their money in the microcap stock which is range bound - it's just a waste of time and money for them. what is more important is that average volume drop below 200K , so it indicates no interest on either side of trade. Until any meaningfull news hit, this stock is range bound, with prevailing downside trend and occasional spikes up.
the stock is a junk . never held the gain . yesterday was just a short covering ; and today drop has nothign to do with sector decline. It's a nature of this stock . Not much positive news from yesterday earnign report and conf. call.