Indeed the fact that FF, RP and RW (Renee Warden) chose to sell on the same day that they exercised options on 2/3/00 (the day of the NASDAQ application PR) is what convinced me that their selling at that time was a bearish sign for the future of the share price.
Both FF and RP had exercised cheap options in the summer of 1999 and could have sold those options just 4 to 6 months after the NASDAQ ap PR and only incurred the minimum 20% LTCG tax. Instead, they chose to sell immediately, which indicated that they believed they would make more money selling in February than they would 4 to 6 months later, even considering that they would owe more than double the income tax on the sale.
IMO, the execs knew that the NASDAQ ap had little chance of being approved so cashed out when they could, even if they had to pay the highest income tax on their gains.