If people see the price moving north, they'll be less inclined to sell because they will believe that the stock will continue to move north. This is trading psychology 101, so I disagree tremendously with the notion that setting your bids at .01 will force sellers to dump at a lower price...in fact, if you watch L2, what you'll notice is that sellers will typically remove their ask until the stock approaches their target price, and then slap on the shares. So again, I strongly disagree with the claim that a large spread will scare sellers to sell at a lower price.

In all likelihood, the people selling at .0124 or higher are the people who bought at .01-.011 so they can make a profit. People who bought at high prices aren't selling anytime soon...