The longs would go ballistic.
Just because of the fact that they made a nuisance of themselves may be enough for the people who make the appointment to get a real hanging judge (so to speak) in there, not that I think one is necessary.
Everything thats come out so far re spongetechs assets/liabilities makes this a slam dunk chapter 7 candidate, IMO.
The rallying cliches uttered by disciples of a stock scam are obsequious, obliquitous, and ubiquitous