OPC pointed out on the Yahoo board yesterday that the warrants could be playing into the shorts' hands. As he noted, the warrants allow the purchase of .6 shares of stock at 2.60. So the higher the stock goes, the greater the return will be for anyone using these warrants/shares as their buying opportunity when they go to cover.
I followed it pretty well, but it just seems like a better bet to go long considering the upside potential. But that's just me.