toxic financing is not really an "investment", but a company may try to spin it as one. I'm guessing it is convertibles.
as long as the toxic financier like Kramer gets 40-45% discount and can dump the dilutive shares immediately, a company like this will dump shares as fast as they can to stay afloat.
As the share price tanks, even more shares need to be issued for that same $1 of toxic financing. Often each tranche grows exponentially.
Soon, an investor's percentage ownership of the share pool drops too a tiny fraction of what it once was.