there's a lot about market making i don't know, but they use computer algorithms that have been perfected to fool humans into buying high, and selling low, all the way down. so our wallets are fed into their meat grinder.
and dilution never stops in most OTC stocks. when they run out of shares authorized, they'll do a reverse split and the process begins again. lower and lower. some tickers have half a dozen RS over time. maybe even more!
i was in a few companies where CEOs had offshore accounts and were probably making a profit shorting their own tickers while it was being diluted by note holders. the OTC is a note holder enrichment scam.
and when a company is deemed fraudulent, the SEC suspends trading, which never hurts the scammers who made a profit during the pumps, it only wipes out retail like us.