That's how it works. MM finds a buyer (let's call him Newbie MacNaive). MM sells as many shares as Mr. MacNaive wants. MM buys shares from out of the 175 million given away recently (since those shares have a zero cost basic, the seller will take whatever the MM is willing to pay).
That's how it works.
It's only rog flooding the market with shares. I'd say he gives them away like candy, but 175 million candies would be much more valuable.