RE:Short position escalates before a suitor bids or takes ppThat it's a a thinly traded stock is the likely reason for its decline.
Lots of companies have increases in their short position with out a PP or takeover happening. I don't see this as an indicator of anything. Your three examples are very different companies in very different situation.
- NOT ran out of cash and is now in play.
- WRN had cash but needs a partner - there is no takeover (yet) but a straegic investment (8% PP).
- Victoria is in production. It wasn't a takeover or a PP, it was a transfer of shares from one sharolder (Orion) to another (Coeur).