That is was smart investors do - they cut their losses - there is no virtue in being long and watching your losses mount. The OTCM is for trading not investing.
Play the price action and always take profits.
Only way to trade penny stocks that use message boards, social media (Twitter - Facebook), forward looking press releases and paid promotions is to just consider them all to be scams and just trade them do not invest in them. You'll lose 99% of the time if you believe the hype.
I find it amazing that shareholders defend the insiders for dumping their stock. That is for personal enrichment not to benefit the shareholders.