It seems to have earned IHub "urban myth" status since then; it's not a commonly used street term.
The term "cellar-boxed", as opposed to "cellar-boxing" is appropriate, though. Here- this guy explains it (simplistically):
The process of driving a price down into the "cellar" is described reasonably enough in the IHub post, but once driven down to .0001, there is no further "cellar boxing", as Knopick would have you believe.
Stocks at a fixed price of .0001 can't be driven down anymore... until the reverse split, of course.
If IHSI were doing a lot of bouncing from .0001 to .0002 or .0003, then the claim of "cellar-boxing", where the manipulators shorted on the upticks might be credible. But not when all the activity is at a level price of .0001. No manipulator is going to continue any volume naked shorting of a stock at .0001.
Risk/reward of a freak breakout is too great.
No, IMHO, it's all (or mostly) wash trading or churn, to give the illusion of activity to entice new unsuspecting rubes:
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