I know that some here do not consider short interest to be important....and that is fair enough, we're all entitled to our opinions as to what matters.  Up til now I'd mostly agree....there have been times where I've found the data useful in that I believe it has helped explain big moves both up and down over at least the past couple of years.

Now we have a figure of just over 700K, but that only includes trades settled up to September 30th...given that there is a 2 or 3 day settlement period that means it does not include any of the trading after the bombshell news about the failure to meet the primary end point.

I am looking forward to the next update because I want to see if that number went up or down...and to what degree, big or small.

By my count we saw total trading this past week of almost 9.2 million shares in Canada, add in the over 2 million that traded OTC and we get over 11 million shares of Resverlogix trading over just 5 days.  Contrast that with the week prior when about 2.1 million traded in Canada and only 600K traded OTC, for a total of less than 3 million.  

When the next update comes I believe we may have an indication of how much of the trading since the news came out....how much of it was short covering.  If the number drops significantly from the most recent update of about 700K, then I believe that will serve as a pretty solid indication that shorts were in fact covering....which I don't regard as bullish buying, its simply cashing in on a smart play and turning a better than 100% profit.  200K shares sold at $2 would net $400K, bought back at about a buck they'd coss just $200K.

If on the other hand short interest climbs, then things get interesting.  Just as bulls will at times buy into good news, bears will likewise borrow and sell shares into bad news.  Herein lies the potential for a bear trap in my opinion, if news comes out that is able to bring in significant buy side interest.

Which way will it go?  Up, down or about the same?  I don't know and don't even have a guess, but I am anxious to find out.