Jack,
Maybe I am totally misunderstanding what you are saying, so forgive me if the miscommunication is on my end of the conversation.
When shorts "cover," they BUY shares. More buying interest for shares in the market would put pressure on the stock to rise in price, not drop, (all else being equal).
If you observe the stock moving from $1.68 to $1.39, that is the result of more shares offered to SELL than to buy. Notice I said "offered" and not "sold." Because remember, in every market, for every seller there must be a buyer.
Probably either shorts selling shares to open their position (going short) or longs disappointed, both reactions most likely having to do with the missed deadline. All short term trading in nature.
As I said yesterday, $1.39 is a very modest pullback, considering. The glass is half-FULL. but considering your handle is "jackthe bear", I assume you are a glass half-empty kind of guy.
