I'm not sure why the shorters would be worried. From my point of...

I'm not sure why the shorters would be worried.

From my point of view they are laughing. QIN is in so much trouble if they manage to get a equity deal together for survival it will be at a significant discount. Any instos that possibly participate in the equity raising will possibly be the same folk that are sitting short. So QIN will save them from having to buy the shares back on the market.
Alternatively if the debt is restructured it will be at astronomically high interest rates that will keep any "profits" subdued for a long time with zero dividend.

QIN is in technical default had it been trading the sp would be sub 10c so holders can be thankful for now it is still suspended. From experience coming back from here will take a long time and is made worse by the fact QIN does not have a prior proven track record of running a business.