No the downgrade isnt fake lol, it is caused by exactly what you stated
otcmarkets downgraded GDSI due to no information of company status has been provided in well over a year.
They(GDSI) did update company share structure in December 2016 which is a good start, I find it odd they did not update the company share float as well but its not hard to see it as all shares held by the DTC are in the float which is 460,276,307
Hopefully GDSI will continue upward and get more volume soon, needs more volume for anyone to even consider being able to sell :)