Well diluting by definition is done by the company, as they're pulling shares out of thin air to sell, i.e. "watering down/diluting" it. It could be someone else dumping shares, but what convinced me that it was dilution is how much it went down after the spike the week of the fight/"launch." Who would sell days before the company had the potential to go up thousands of percent after a successful online gaming launch? The company itself was the only one with something to gain from selling then, AND they were the only ones that knew at the time that the launch was going to fail.
And I don't really blame them for diluting and not telling us if they're investing the money in something that will pay off, but I don't want to be in that number while they're doing it.