Nothing wrong with putting in a lowball bid order. I do it all the time. If it drops, great! If not, then that's even better. Helps with taking emotion out of it as you are rooting for both price movements.
My guess is that this is Pinetree and the shorts planned sell and cover. All done between $3.50 and $4.25! When this ends we move up, so calling bottom of $3.50 as long as true longs hold on to their shares.