What you speak of is integrity. Shareholders love integrity, when not involved in pump and dump penny momo scams.
I don't see this as a scam, I just see this as someone who has completely mismanaged the communication of financials and other pieces shareholders count on to have confidence.
It has come down to telling shareholders something that he is not in a position to deliver on, that's risky. Everyone wants the fins out, including the leaders of the company. This CE is such a wet blanket on this fire that could rage.