I think we all wonder the same thing and assume the worst, ie, that there was huge fraud perpetrated by Zheng and collaborators.
It is plausible however that this is more of an issue of personality, cultural factors and general incompetence/stupidity. Zheng's stubbornness and arrogance could have lead to a my way or highway approach especially if there are some things he wishes were not made public (unauthorized loans). He may also be trying to get back at the shorts in one foul swoop. As inexplicable as it may seem, he may have thought the best way to exonerate himself would be to build a rock solid case rather than with letters and statements. Again, this is ludicrous as an approach to such a situation from my perspective, but not everyone thinks the same way about things, particularly when the stakes are so high. He may also think, those that don't trust me may loose out, but that is their problem. I will buy up more shares at a better price or go private.
