I would go with 1)...someone wanted out and took what cash they could get. According to #1 two thirds of the shares were sold short. However, those very large share transactions were between .01 and .015...we ended the day at .02 so if true, they have already lost money! When you short a stock you short it at a higher SP then buy it back when the SP drops to your personal strike point. What #1 has indicated just doesn't make sense unless those who shorted at those levels expect the price to drop below 1 cent and maybe then some. Insider info, just gambling, or trying to spook the PIPE's and other significant shareholders to panic sell?