generactor: Isn't it possible, and perhaps likely, that the original "sale" of these registered shares was from CYDY to the designated authorized dealer, who then "resold" as many as possible of those shares to sophisticated investors -- and that the "unsold" portion of those shares is what is being deregistered?

I suggest the likelihood of the above interpretation notwithstanding my hope that your interpretation is actually accurate. -- because your interpretation would seem compatible with a buyout or merger -- but neither seems likely to me at this point. Nevertheless, I'll gladly settle for Respert's interpretation of this housecleaning activity.