GT...just a "theory" of the how.
An entity shorting at .01 expects the stock to go to or approach zero enabling them if they short a million shares make about a $10k profit.
Who is likely to be the entity is the question.
I'd guess it is the outside funds that normally follow LJ into their funding arrangements.
LJ as they are an investor are priviledged to the exact same information we have regarding the progress of the company, which has been zip!
When WSGI requests a draw of funds from LJ in cash in exchange for shares and there is no compelling reason for them to hold them, they dump them into the market to recoup their investment dollars. The minion hangers around know this as well and increase the downward pressure in coordination with LJ's dump. As well, LJ has the right monthly to convert a part of the original debenture into shares which they also likely dump as they get them at a favorable discount vig.
In a vacuum of tangible evidence to reverse the SP trend, this goes on ad nausem and unchecked other than by retail sopping up the supply. The volume of the downside will continue to overwhelm the upside bias as long as there remains that vacuum or LJ is taken out of the picture.
Thus, the favored side in the strategy at the moment and of recent is playing into the the hands of the downside bias and favors a short position...boxed or naked.
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Before dawn there is darkness. Then the sun rises on a new day.