RE:Hole in the Wall !!!This is a classic example of informed short selling ahead of private placements. This is a classic example of informed short selling ahead of the private placement. 
Companies planning a private placement typically gauge the interest of institutional buyers before the offering is publicly announced. Regulators are concerned with this practice, called wall-crossing, as it might invite insider trading, especially when the potential investors are hedge funds. The increase in short interest of 20M+ is the obvious evidence of pre-announcement short selling. Pre-announcement short sellers have traded for speculative reasons in an attempt to exploit a negative announcement effect. This pre-announcement short sellers are wall-crossed
investors who decided to lock-in a profit on the securities they agreed to purchase, as the securities in a private placement were offered at a discount. Pre-announcement short selling, both speculation induced and hedging-induced, is considered illegal by the SEC.