This is really interesting to discuss. This epitomizes the risks and hazards of OTC trading, IMO.
The SEC is specifically calling Auctus a "toxic lender." My definition of "toxic lender" is a lender that also shorts the stock, sending the borrower into a death spiral. GTHP suffered from that kind of toxic lender between 2014 and 2019, but the PPS held after that 2019 R/S and I don't think it would have held if Auctus was shorting.