The thing with the shorter is that he (or she) likely knows that PTK is a substantial portion of PNP's valuation so that the $0.20/share NAV as of the end of June will go down in July because PTK is down +/- 30% so far this month - it goes down dramatically because PNP is highly leveraged - that will put PNP off-side on the covenant on the debt - forcing more selling from PNP that the short can use to cover.

PNP is caught in a death spiral because of its debt and high reliance on PTK as a driver of valuation.