I would have to agree that the shorts should have covered by now, as the volume has been there to do so, and the two 'dead-cat' bounces may have been them doing just that. The next short report will reveal a lot.
But, going forward, we still have a lot of uncertainty. We do not know how much of their accounts receivables remain questionable, We do not know if the Q4 numbers will be any better than Q3, and won't know for quite a while. We don't know what the dividend will be for the next quarter. And we don't know if there is potential for the law suit to succeed, nor if it will be the only lawsuit coming.
PSN should be able to survive going forward, but likely with much smaller profits.
The question is, what kind of yield will investors demand to hold a cyclical stock with management that no one trusts? That is a tough one.