I disagree with you. He knew what would happen to the pps when he diluted it back in Sept, 2010 and immediately rescinded the 400 million shares he issued to himself. Then knowing what dilution would do to the pps, he went to a TA that didn't release the share structure and increased the O/S by 700 million.
To think he didn't know what that increase would do to the pps would be a detachment from reality.