Doesn't matter how they are covered, as the SP rises they lose, if they covered their shorts in the $3.00 $4.00 range they would have made out like bandits. They may still be ahead depending on when they shorted. I do believe the short account increased in the $3ish range.... those people are losing and will cover, whether through options, the debentures or just buying outright. The bottom line is that as the SP rises they lose. Most likely they are covered by options and the debentures.