Remember that, in the OTC world, dilution is the only source available to companies to raise capital. All other instruments are either too prohibitive or costly, or accredited investors won't entertain them, and institutional investors are forbidden by law in investing in OTC stocks.
CEOs are never off limits. It would be foolish to blame the PPS nose dive on a short which cannot be proven exists; and, if it did exist, how can a short effect the performance of the company? It cannot stop one single title transaction or prevent one nickel of profit.