One thing really has nothing to do with the other. Probably is still being diluted. But on the other hand...people typically DO sell for a loss. That's why over 95% of the penny stock traders lose on their trades.
People sell for losses all the time when they get scared it might go lower and not recover or when they want to move into a better position they find. We already know it was diluted because float went from 18M to 39M and the s1 and s1-a.