Even if your scenario is correct, those pursuing it are foolish. They are pure gamblers in the truest sense of the word. Had they purchased at ~.5/share, they purchased a company which at that point was pure speculation (no drugs in human trails). Today we have a lot more science to back up the company, thereby reducing risk.

Traders who are happy making 250k are short sided (because that 250k could be 2.5M or 25M if Kevetrin works). The fact  that their "bet" has doubled and started to show real potential should tell them something... but selling here doesn't make sense in my worldview. This is a micro cap penny stock with HUGE potential. If they have funds dedicated to this type of investment (500k in your scenario), where else should they put their funds other than a company that potentially has a cure of 50% of cancers?

Would I take off a play that had me up 100% with the potential of going up 10 to 100x more, no way. Those who are wealthy generally spent years accumulating wealth and behave like the wealthy do... often times their investment strategies are measured in years if not decades. Day trading and momentum investing is a great way to loose everything.