Putting the majority shareholder in the minority shouldn't have any bearing, as they can issue additional shares at will to restore the balance.
I would guess it was just panic over having to service so many shareholders and the likelihood that the price would not be as high as they had hoped with so many shares out.
We can at least congratulate ourselves because, with so many complaints being made, this shell will have a black cloud over it from now on, unless the comopany does the right thing.
It was kind of low for them to cancel out the shareholders who had fewer than 501 shares, but that alone shows the type of people they are.