Because people tend to buy penny stocks on the hype...which there is a lot of at the moment. Insiders and note holders sell on VOLUME since they don't really care about the pps. Mix that in with some front loaders sitting on some decent profits and the "rubber band" snaps.
Exactly like on MLCG...
USMJ is overheating on hype right now and is at a 52 week high with a 12 BILLION OS....it's rubber band will snap also.