I think they will keep doing this until they hit the long term and psychological support of 100p
In the meantime, I understand that GCR have been tweeting negative remarks again about Quindell. Perhaps this has caused the price drop. I do wonder whether long-term institutional investors are eschewing this instrument (other than to sell it), which means that the whole market is driven by (retail?) traders. Certainly the volume has dropped right off.
So to summarise, I am holding short again, from that bounce to 165p the other day. I do recommend you set fairly wide stops if short, as the share seems to bounce first thing every morning, before fading all day.