In my software posit library (which is intentionally strictly binary and not backended by IEEE floats), (https://github.com/interplanetary-robot/SigmoidNumbers) I did everything by first inverting negative numbers and doing decode in the positive domain.
As I design the hardware, it's actually better to NOT do a two's complement inversion to do the decode, and keep the fraction as two's complement!
Also the 4 bit posit was just a simplification to help you understand the structure from a constructive point of view. posits can be of arbitrary length; they have a property I call isomorphic - so appending zeros exactly preserves the value of a short posit when increased in length; conversely, rounding a long posit to a shorter one reports the "nearest representable value".
http://web.stanford.edu/class/ee380/Abstracts/170201-slides....
Edit: Well. I see it would result in losing the values 0 and 1. Another question: Since it is fixed length of 4 bits (for N=32) why don't we just extract the 4 bit value, then we could represent 2^4 regimes this time without losing 0 and 1.