I can't answer for why they would be so stupid, but I can say that they did that very thing (selling shares at .0001) multiple times in the past.
As for the 5 billion max allowed, that's as it is now. One filing with Colorado and it could be 30 billion with the stroke of a pen if they wanted it to be.
It wasn't too long ago this thing was at 250k. What they've always done in the past is to file to double their a/s, so here we are at 5 billion, next logical stop = 10 billion.