Why would they invest in the first place if they didn't believe it would go above $3.13 or the warrant strike price of $3.44 (ok one can think of the warrants were free). I don't see why it makes sense to sell at a loss so quickly. If they held and it goes above $3.44 and they exercise the warrants, they not only have profit on the warrants but also on the shares at $3.13.

It seems to me if they have such low confidence in the company they are willing to part with their shares at a loss (and the selling continues at lower prices than $2.85 so a bigger loss than that for those shares) they would not have invested in the first place.

Maybe I'm missing something but I do think institutional investors hang in there for at least a month at the bare minimum and not sell on the first day of trading or even in the few few weeks.