Market Makers do all the time. It is legal for them. As a matter of fact there is little to no accountability for them in that endeavor. The game is rigged in that the Market Makers are in bed with the discount brokerages, which comprise almost the entire retail trading market today. For NanoLogic to stay in the game with little to no dilution for these past few years is telling. Naked Shorts have been all over this for some time now.
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