Activists Short "Insolvent" China BAK Battery

China BAK Battery Inc. (NASDAQ:CBAK) is up over 1 percent today and is racing to all time highs, up almost 90 percent in the past month. This high flying price momentum has two hedge fund investors short the stock with indications the price spike could be another pump and dump case, according to sources.     China BAK Battery stock surged on rumors of a Chinese government subsidy On July 1, with the stock trading near $2.51 per share, the China BAK Battery Inc. (NASDAQ:CBAK) suddenly surged on rumors of a Chinese government subsidy for battery producers. The problem, says activist…