I highly doubt that NITE would advertise that they're selling that many shares short, so I would think that NITE just handled the trades for whoever it was that shorted all those shares. That means that their short position has to be covered sooner or later, and they're betting that some stockholders will give up that many shares at a price lower than $0.18.
Now, how this plays out Monday I have no idea, because whenever Market Makers are involved, there's just no telling what can happen... and you have heard of Market Maker "Manipulation" before, because that's what you're basically describing here ...
"It's part of the market maker being able to do this to keep a stable and liquid market."
So, Monday could prove to be somewhat enlightening, or maybe it won't ... I guess we'll just have to wait and see !!!
ADTM
P.S. This is a modification of my original reply posted on 08/23/2015.