I will add my "guess" to the stack of possible reasons for the sell off. I think some investors have concluded that STWA stock is dead money until the TransCanada pilot project is completed many months from now. There was probably some disappointment that the process would take a lot longer than they had anticipated.
By the way,I love your paradox: " I am going to suggest to you that a contributory reason the price is going down is not because people are selling off shares - but paradoxically because they are in fact buying substantially more."
There really isn't anything unusual going on here from a pump and dump standpoint. ZERO sells convertible notes at anywhere from 7-10% interest convertible around .25-.28 for the past few years. Plus with no additional consideration lets the purchaser buy 100% additional shares to what they could convert between .25 and .30. So they get financing so what do you think happens when the stock goes up as most of these warrants were around for two years. If you look at their 10K most of the warrants are being exercised and those are not being held but sold.
So what you have here are a bunch of people trying to keep up the price of the stock to make sure there is a market for them to make money - not invest in STWA. Because most of the stock was issued at the .25 range many have taken their profits.
News 
Market Data 
Discover 
