I missed today's action, instead I spent the day wandering around the Toronto Zoo for 7+ hours....and wore myself out in the process.  It was worth it though, got to see my first live Giant Panda, four actually....that was pretty cool.  But it seems I'm not the only one who is worn out...looks like I missed some fireworks here today.

That got me to thinking about the Cramer interview from TheStreet.Com that I posted about just the other day....The one where Jim describes some of the manipulations employed by Hedge types when they want to get the PPS of a stock down.  

I specifically made mention of how he talked about repeatedly hitting bids and then offering...."hit and offer, hit and offer, hit and offer".  Pretty simple, wipe out the bidders by dumping borrowed shares on them, then making sure there's plenty more on the offer side to give the impression of a broad based sell off.

Given the huge jump in short selling here, combined with GolfYeti's observations and posts showing rapid fire dumping....its not hard to come to the conclusion that this is something we've seen here since the financing deal came out on June 9th.  

But there was more to the Cramer interview than just borrowing and dumping back shares into the market to drive the price down....he went further, much much further.

Here's the link yet again:

https://youtu.be/W90V_DyPJTs

After driving the PPS down Cramer talks about "Creating a Fiction"....about contacting outfits like CNBC and The WSJ to spread false rumours....Calling media types and saying that the new I-Phone, that Verizon isn't going to take it, that they're a LG or Noikia house, that Apple wants too much....that the new phone won't be ready for MAC World etc.  

Blatant lies and manipulation...but its important because, after driving the price down....now the Hedgie needs to cover and he needs to instill some fear and doubt into the minds of shareholders...or as Cramer calls them at one point "moron longs".

But Cramer is talking about stocks like Apple, or RIM (its an old interview)....stocks that are talked about regularly on media outlets like CNBC and written about in widely followed print journalism.  

But Resverlogix???  DM can't get interviewed unless he pays someone to ask him questions.

What's someone caught short a few hundred thousand to do if he wants to "create a fiction" a la Monsieur Cramer?  He can't call up "the idiot reporter at the Journal" because that idiot has never even heard of Resverlogix and doesn't want to write an article about it because nobody would read it....

One option might be to hire some hack writer to do a hatchet job on a site like Seeking Alpha....but there are risks there as well, and there would be a cost....especially to hire someone with a decent enough sized book to make it worthwhile.  Plus that could be too obvious by half, as in serious overkill....hatchet jobs are typically done on stocks trading on the Naz that regularily have volumes in the millions....not some thinly traded Canadian stock that is on the OTC in the US.

Something like that might be seen as too obvious by half....like taking out a flame thrower to burn down a doll house.

Someone caught short would have a target audience they'd want to influence....shareholders obviously, and the best place to target them is on an investor discussion board like this one or on Stockhouse imo.  

The problem is no short is going to come out blatantly and admit, "look, I'm short here....", that's not in their DNA.  Better to play the angle of being an disgruntled shareholder, better yet an angry and fed up investor....pick at that scab that comes from seeing a stock go from over $2 to somewhere around $1.30 in just a few days of trading...never minding that the reason it fell is because 100s of thousands of shares were just borrowed and then dumped back into the market.

The other option is to defend the short position by shorting even more....just pony even more cash and put it in the old margin account...what's another $100K or even $1 million if you're bent on winning the game.