its not about people making money. if everyone keeps pumping how thin the stock is and how it'll move up on any volume and people keep buying and ask doesnt' budge... what does that tell you?!?!?! Big seller in there. Most likely dilution. So people sell for a simple fact that stock won't go up and more and more people keep getting stuck. which means more sellers and more bid whackers.
Even if they sell at a loss how can you blame them? Seller is too big to clean up with this volume so there is no upside and plenty of downside. First ones running for the door were smart, not impatient or ridiculous. whats ridiculous is buying a thin stock that won't budge on any volume and then holding it for big losses.