I'm assuming they have the good sense to only be updating with good news - ie they really are hashing.
If they're going to backtrack and say they aren't, they should have just kept their mouth shut since most the damage had already been done and the price had stabilized.
Well, if they say they are hashing, then they've only started, so they missed several days and lied about things being ok. Credibility is damaged.
If they haven't resolved the issues, then I think it is best to come clean. Yes, the stock will tank, but they will regain credibility, so when they do get it fixed, some people will reinvest.
I really don't think they have learned how to do PR over night, so I expect them to fumble on this one, too. You know, at that 48 hour deadline, that would have been the perfect time to come clean and save the credibility.
If it's just words, then thing will implode FAST. Even with just photos, we're gonna see a nosedive.
And I assume they won't even acknowledge the locking of the shares, everyone forgot about that...