It is both.When ever dilution takes place,there is always short along with it.Easy money of scambag MMs.They have insider info in a way.Should be totally illegal for the MM that dilutes for a CD client,or company, to short the stock.It is not any Different for someone that is acting on insider info.So the pos MM that shorts the stock While has the goods of the diluted stock coming,it should be absolutely Illegal.