CMKM Diamonds Inc (fka CMKX)

[janice shell]

You can't blame the shorting prior on the pipe.

Sure you can. PIPE financiers practically always do that. CEOs who sign on the bottom line know it too. That's why Sedona insisted on a "no shorting" clause in its PIPE agreement. But Rhino ignored that and shorted anyway, which is why they got smacked.

This is a gray area. Toxic financiers have been doing it for a long while, and regulators haven't objected. Note that the article refers to "improper shorting" rather than "illegal shorting".