A price reduction like this is pretty typical for the way smaller stocks like this can be manipulated.
If a group of investors decides to short a stock (sell shares they don't have) they can make it look and seem like something is wrong by the stock price going down.
If when this happens and it leads to panic selling, they can buy back the shares they sold for a profit. I.E. they sell 20K shares at .85 per share. As stock price comes down (in part from their selling) someone decides to sell their shares (before it goes any lower) let's say at .65 per share... they just a profit of $4000. 20K x .20. Good for them. They can only make as much as the the stock price goes down.
However... you may have heard of the proverbial short squeeze. This is when the stock price doesn't cooperate, or they're not able to invoke sufficient selling at lower prices as they hoped. When this happens... they will eventually have to buy back their shares at whatever the market price is.
Their risk (though generally nominal) is potentially unlimited. Just as long investors sometimes put stop orders to limit risk... well, short sellers will do the same (at higher prices to limit their exposure.)
Even if they get behind in a trade... they will generally continue shorting stock at higher prices, hoping that eventually the stock price will come back down. Their risk is theoretically unlimited as stock prices could potentially continue to go up indefinitely. At some point, they will need to repurchase (and deliver) the shares they sold short.
Watch for opportunities with those you trust.
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