Baba there was not anywhere near the short position volume required to make a dent in that financing. The stock went to .80 very quickly prior to the financing representing an opportunity that the short took advantage of. Pretty straight forward action to enable them to cover when the financing was announced. 

Now what people tend to be overlooking is the fact that the underwriter bought shares @.55 plus a half warrant without using the 30 day wait period when they could have just payed .035 for a whole warrant. Try and figure that one out without coming to the conclusion that the underwritter liked what they were told. If they liked it at .55 on March 31 then one would think they would like it at the current price.