Not speaking for Cyosol but I think your interpretation is correct and likely what he/she was referring to. Basically the warrants could keep a lid on any really large share movements potentially. Of course the upside would be the cash brought in to fund other pipeline indications.
Investors usually fund the exercise of their warrants by selling some of the shares they receive from the company. They could obviously just pay the company with their cash, but as far as I know that's not a common thing to do.
Low volume means it will be harder to sell those shares without creating big dips.