What you have been saying is mostly true, but not exactly IMO. Market makers (mostly automated process, but still run by real people - especially in the otc market) create a market for stocks. If someone wants to buy, they want the business so they they have a motive to sell shares even if their inventory is low. Same works for those who want to sell. If however, they feel that the stock is undervalued, they may choose not to sell - especially if they feel they cannot buy without at least breaking even.
However, they will occasionally find they have a larger inventory of stocks than they want, or may find that they have a deficit of shares (amount reported to Finra 2x/month).
Now here is where we may disagree... IF for example, ETRF thinks that the stock is going to go down, it may be a bit more aggressive on the ask. He may find himself short shares if momentum goes the other way. There are a few ways MM's play games to get back to at least even. Increasing the spread is one way. Another way is to continuously sit at the ask and if they keep getting taken out, they will lower the ask to make it look like there is selling demand.
Yesterday and today, ETRF had a seemingly endless supply of shares at the ask. It could be that some random seller - you or me, was dumping shares, but by the looks of the trades, I would say it was a market maker trying to buy back shares while fighting a rise at the ask. We never know for sure, but yesterday, we saw a pattern of someone trying to keep the price down by regularly dropping the ask after someone took out the current price.
Today, we saw the same thing, but not as frequently. ETRF was at the front of the ask almost the entire day. Is someone dumping? More likely, it was a MM that got caught short in inventory - just by the feel of the trade and the endless supply on a stock that has no dilution. Interestingly enough, I believe he closed shop today even shorter.
Sure hope we get good news on Monday before open. If I am right, he will run the stock even higher than what market will demand and then try to dump shares to make his money back. Bout the same time a possible PR comes out.
Think I am crazy? MM Nite as been sued many times over the years for price manipulation - and settled.
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