The rules within MM's can play are terrible, especially n the OTC. They can sell shares they don't own or have access to. There are different time limitations on those, 3 days, 11 days and 23 days, depending on the trade, if they can borrow the stock to trade against, etc......... Its truly a disgusting system.
So they can keep selling shares they don't own, and when they feel the time is right (usually a real desk trader), or the computer kicks in, they drop sack the bid for 100 shares, drop the bids, then drop the ask by a penny making people feel like its going to fall to create panic selling, where, into their high bid that they just dropped. Its more psychology and its definitely the day traders v. the MM's on that.
