How it works:
placement agent tells the short sellers in advance; stock shorted down to shit; short sellers buy at a dollar instead of seven dollars; they keep the difference; stock diluted. Repeat. Eventually the company goes out of business (which wipes the naked short selling records off the books and takes away any possibility of justice) or its technology is bought at distressed prices or — if it threatens BigPhama toxic offering at higher price — simply buried. Welcome to the world of Naked Short Selling.
Companies who believe they are being naked short sold (counterfeit shares) should contact BuyIns.net for a report that can be used to get to by-name criminals doing the dirty. In today’s environment this has a 50-50 chance of stopping the dirty — if not you can sue them in state court under RICO.