The toxic lenders like KBM and Asher short the stock prior to their note conversions since it is more profitable for them. In the note with HJOE they could not get shares from the conversion of the note to “cover” their short position. And since the stock is revoked the court cannot award shares to KBM. The court can only award KBM cash.

All shareholding’s are still intact after all this time and so are any short positions. KBM will win the case but if HJOE trades again they will loose a fortune.