YES... this is exactly what happens, when a company dilutes, they do not go and sell small blocks, they go through MM's to liquidate and keep the price from deflating TOO much - with that said they both know they price will go down (they're no dummies)
MM's will then short the stock knowing if you issue 100% more shares the price will drop at least 50% from current levels. (its a win win for the company/mm's)
this is why stocks usually slide down more than 50% off its peak during dilution.
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