Innovation Pharmaceuticals Inc (IPIX)

[sox040713]

You hit the nail on the head. They have to find something (without proof) to explain the SP since they'll never say anything bad about Leo/IPIX. Their mindset is still at 10 years ago when the total OS was under 100M and the daily volume was under 100K shares. So when the daily volume is 500K shares or more, they claim most of them are fake/naked because longs they know are not selling therefore no one is selling. They assume the 350M shares dilution were all absorbed by longs. Even at 1M shares the daily volume is ~0.2% of the total OS. I guess they think 0.2% is too much selling so they can't be real shares.

It's just a ridiculous conspiracy theory you often see on penny stocks, especially scams, to disguise the incompetence of the management and/or to draw attention away from toxic financing and insider selling.