Trying to make sense of the "toxic financing" argument is impossible. It's not an argument though, it's a coordinated effort to drive the price down and make money by shorting. IMHO of course.
There is no answer. The "dilution" that is being written about here is a manipulation by some to make money shorting. How on earth can you have "massive dilution" when the volume is low? Don't there have to be "massive buys" from those selling?