Stockitution

[OTCboy]

Reverse split has occured on ONTC stocks earlier last year. There was a 1:1000 split on Jan 11 and I received 32 stocks out of the previous 32.000 I had. Please excuse my incompetency, I should miss something, but shouldn't a reverse split mantain the capitalization at the same level? The 32 stocks I received were at about $35 price, but in the following months the price dropped to $0.0001. Is this because more stocks were issued?
Can someone briefly explain me what's the trick of doing the reverse splits this way and what does it mean for an investor?
Thanks.