Because the fax said it was paid 4 million shares. That is dilution and the company throws over 400k at a junk fax? Not a realistic price on the fax either. Emotions drive investors to dump at such an idiotic claim and an idiotic fax.
The fax gets a hold on the investors emotions and they sell.
The company is the victim because they did not do the fax and the investor is a victim because he sells his shares and a shorter covers.
A great potential upside day is replaced with panic selling and short covering.