You are correct that the repayment of the previous loan in December had very little impact on our short selling (sic) friends back in December.  Short interest was around 170K before the news of the Hepa offering and subsequent repayment of the loan, and it was still around 170K afterwards. 

So even though the PPS went from around $1.30 or so for much of November, and then shot up to damn near $2.50 after the news.....those behind the short position weathered the storm.

The dynamics are different now however, assuming the 2+ million short figure from shortdata.ca is accurate, (and I suspect the stockwatch # will be close to that) then the position is now more than 10 times bigger.  If the PPS goes on a run like it did with the repayment news....then the impact to margin requirements would be magnfied 10 fold as well.

Will shorts be able and/or willing to weather the same type of storm if it comes?  

First we'll need to see a positive SSRA and then at least a similar type jump in the PPS....if that happens then we'll find out.