I looked this Steinhauer up....and he doesn't appear to be any reliable source whatsoever, making me believe it's not worth mentioning any further
That said, it's a possible scenario that Wynnefield Capital will sell it's musclepharm shares if it doesn't trust the company, and thereby give up on the proxy fight.
Ackman did that with JCPenney, Icahn did that with Lions Gate Entertainment....they just gave up fighting more with boards and ceos by selling their stocks in the companies...a really good decision when it came to JCPenney, and a really bad decision when it came to Lions Gate Entertainment.