That is playing into hands of dilution screamers. To counter this shorting, company should address concerns of dilution. They shouldn’t have a problem doing it as there isn’t any.
Their silence only emboldens MMs and shorts and give strength to non-existent dilution. If they put out a PR stating that then at least some on the sidelines would jump in. Maybe whales showing at these levels, would take the game away from shorts and make them cover and others to chase.