I like your analysis. But it suks if it is really true- sure looks fishy.

Even worse- These guys had no way of knowing where the stock price would end up so the short profit could have been even greater if the PPS did not stabilize around 70 cents. Obviously denying the permit is probably the #1 stock PPS killer that could have been used to affect a profit for shorts. Also, there was plenty time to cover and to slowly buy more below $1 before the Friday you mention previous to the reversal from the Ortega position. If you were on the inside you could have probably trippled your worth playing both events.