I think it's better we count on good trial results, etc. than a short squeeze. Paulson private placement investors still have hundreds? of millions of shares in certificate form. It's a pain in the ass process to register these shares -- only a few brokers like Schwab will do it. Some of the Paulson investors might be shorting (truly hedging) against their long paper certificates, inflating the short float, but aren't gonna be bankruptable in any squeeze. (That's a neutralizing hedge). We have no way to know how much of the short float such hedges represent.