Any rational investor would regard that kind of research/reliance as something that smacks of a "DUMB and DUMBER" approach.
They clearly were simply going after CTIX playing the odds that CTIX would NOT put up a fight and just pay them off.
Making MORE DUMB statements as a defence is not helping their credibility.
If they stated they were looking into SUING the Short Sellers for misleading them (even though they have no case in doing so) that would provide more reasonable rationality. Unless of course they were INDEED in cahoots with them from the start. JMHO