RE: Huge Increase in short PositionPerhaps anything is possible, but that would be an awfully dangerous way to satisfy a client. Occam's Razor says that the small short position in WED is the from the same source as for any other spec stock.
In any case, the short position in WED is hardly bad news. The increased liquidity over the last few weeks hasn't hurt the stock price, suggesting that this stock has some strength - even with no news or publicity. Usually, a spec stock drifts steadily lower when all the chatter on the internet boards stops. If a stock has strength when there is no interest, it may really take off on good news.
We may have a month or two to wait for serious movement. Patience folks.