They should really start covering. Pricewise, they have a lot of room to make a good profit while doing so. With other potential buyers on the sideline, and with some shareholders being scared stiff and ready to sell at anything above $2.00, they still have a few have a few months to slowly cover until there is any hint of commercial production. They know that any positive effect of any other type of news that are not directly about revenues can be squashed easily as demonstrated time and again. They know also that the poorly crafted NRs from the company leave plenty of room to create doubt and fear. For those who may ask what I am talking about, just one example: the partnership with Veolia, with no dollars or royalty percentages attached, speaking of the potential construction of red mud mediation.
The flash crash that they initiated sucessfully undemined confidence, and the reaction of the regulatory bodies showed them that they could do as they pleased without fear of consequences. Let us not forget that the IIROC decision to reprice at $1.90 right after the crash gave the shorters the advantage. So, after a short and incomplete SP recovery, the shorters knew that they had been given a green light to push the SP down with the tacit approval of the authorities.
If shorters start to cover now, they will make a killing. If they wait too long, they may get in trouble.