CarbonMeta Technologies Inc (COWI)

[SPIN]

perhaps we will just have to agree to disagree?

you say "It would be pointless for them to sell shares short when they can just sell shares."

the notion that it is somehow "pointless" is erroneous IMO. selling short would increase downward pressure and result in lower prices which influence subsequent conversion or redemption prices that are based on a backward looking discount formula using the lowest daily VWAP from the prior 30 days, despite its complete conflict with the supposedly "fixed price" financing that was announced:

settle any requested redemptions by either paying cash or issuing the number of shares of our common stock equal to the cash amount owed divided by a stock price equal to 95% of the lowest daily volume weighted average price of our common stock during the thirty (30) trading days immediately preceding the date of the redemption.

http://www.sec.gov/Archives/edgar/data/1156784/000114420406050988/v059435_sb2-a.htm

deliberately driving the price lower via short sales would result in lower lows, and a lower one day lowest VWAP over any prior 30 day span, and a higher number of shares issued for a constant dollar amount converted or redeemed -- and any excess shares after "covering" could also be sold, driving the price even lower.

and again, there are examples of this sort of scheme where the SEC has already brought enforcement actions.

for example:
http://www.forbes.com/business/2006/12/20/pipes-sec-insider-trading-biz-cx_lm_1220pipes.html