Those shorts were probably put on the minute that news of the financing hit. 8 million shares traded at an average price of .549 on the 12th. And the next day it traded 3 million at an average price of .543. 

The average price over the report period was .509 with 7.5 million shares traded so lots of opportunity for the shorts to cover and pocket a nickel. 

But why did the short decide to cover at higher prices than we see today? Because they think it should be trading higher would be my guess. Guess they figured that if insiders who own all kinds of options were buying into the private placement then it was not good bet to stay short.