Convertible debt may be being dumped. But I doubt that is what has been going on. I personally believe a lot of the flipping and spike in volume is more than likely MM's, rather than toxic debt being dumped. You said it yourself, They could RS or raise AS. But until that happens, there's no real dumping going on. The convertible notes are not really a factor as they are not uncommon, already there, and unless more is issued there's no dilution happening. If the conversions are whats being dumped, then eventually it should help any future runs as shares will be in stronger hands. For every share transaction there is a buyer and a seller. If debt is whats being dumped it should make the financials look a lot nicer as whats been converted can come off the books. If much more convertible notes gets issued, then again they would have to raise AS to cover those shares.
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