You certainly did not see that conclusion in anything I said!
I was very explicitly referring to those holding NNVC in MARGIN accounts, not institutions.
Please have some minimal concern for accuracy and what I actually said when "interpreting" my posts. IMHO you owe it to other posters to take care not to say or imply that they said things that you only inferred from their posts. Inferences may not be supported in which case the error is by the person making the inference and not by the person who made the statement the non sequiter was drawn from.
I am well aware that the current institutional ownership is totally negligible which is exactly why I did not address it in any way whatsoever.
What may have confused you (combined with the fact that obviously you were not paying close attention) is the fact that many institutions have a rule to not buy any stock less than $5 in SP (such rules are entirely self imposed and therefore could be broken any time they feel like it. "guideline" would be a far better term but "rule' is the term generally used)
That's not remotely the same as the HARD AND FAST AND TOTALLY INFLEXIBLE cuttoff (or change) in margin support when the SP falls below $5 (some brokets cutoff all margin support below that level others merely reduce it. In either case the effect is to trigger a margin call in accounts that hold the company and are too close to minimum equity.
There is nothing flexible or negotiable about such cutoffs and when they are breached and equity falls below requirements, margin calls are issued. Some brokers only make the calculation of margin support at the end of the day on closing price. Others like IB do it continuously in real time and automatically sell shares at the market instantly whenever margin support falls below required levels.
The reason all such sales don't hit the tape simultaneously is that some accounts have enough equity that margin support is not breached until the SP gets a bit below the cutoff.
News 
Market Data 
Discover 
