"Do you think the BOD can be faulted for "allowing ES to short the stock"? "

If they did allow ES to short, I'll answer that with a resounding YES! I've owned several comapnies who have done PIPE financing who have NEEDED the money just as badly as PTSC did and they have negotiated into their deals anti-shorting language, and parameters. It's not and uncommon practice or clause, IME.

If someone is allowed to short the stock as well as is provided with endless warrants, it seems like it would give him the ability to artificially depresse the stock, which also can support an argument and negotiating position for price resets on warrants. If he's selling shares he already owns, that would limit such ability.