Pink: who is shocked that they are diluting?
You stated they weren't, the financial reports say they intend to. And what usually turns out to be the case with these penny stocks, it's DILUTION that kills shareholder value, not traders or shorts.
There are legal shorts and there aer illegal shorts. MMs can legally short the stock, I believe the "loophole" they use to justify this has to do with creating liquidity, which PYPR has no probelm with at the present time. One wonders who has the incentive to LEGALLY short a stock trading as low as this as the risk far outweighs the reward. That's why it would be REAL intersting to see these financing deals they intend to pay off with stock. Usually it's the financers who have the incentive to short so they get more shares (e.g. Cornell and other PIPE hedge funds). And you can bet the financers know a lot more about the financial situation of a company, especially a pink sheet company, then the small, retail shareholder.