To learn more about this illegal activity follow this link. It is a phenomenol presentation of the problem. As more people become aware of this happening the better off we will all be on stopping it. http://www.businessjive.com/nss/darkside.html
Yes this is the same as dillution but with no backing. A simple way of crushing any momo it has going. Then a much cheaper cover or no cover at all. Amazing how the SEC/DTC/GOVT can let large hedges and offshores destroy small/startup business.