Now. I may be oversimplifying the matter ( and I hope that I am not being repetitive) but it seems to me that if I held warrants at $1,50 and I coud sell shares at $2.00, I would do it all day. In fact, I have often read of warrant holders that sell shares just to acquire the funds to buy the (lower-priced) warrants.

That would be true if the stock was only worth $2. But if the stock is say worth $10 then the strategy should be to accumulate and hold as many 'cheap' shares as possible.

Cliff's financial issues are simply casuing them to make decisions that are short term in nature, that is good in the short term but possibly not to bright in the medium to long term.