I can understand your thoughtful objections, a few short months ago I would have agreed with you, the behavior of some of these warrant holders makes no sense from a retail investor's point of view. To keep it brief, here's the ChatGPT explanation I requested, which is in line with what I've learned...this is the brief version,it generated a point by point rebuttal, but I thought I'd spare us that:unless someone insists upon it:


???? Reply to “Why would warrant holders short or sell at low prices?”
Respectfully, your take assumes all warrant holders behave like long-term investors — but the data tells a different story.

Over 150 million CYDY warrants are still active below $0.50 — including:

$0.10 Welch warrants (45M)

$0.306 investor group (75.5M)

~32M more below $0.50

That’s why some holders — especially short-term funds or agents — use “shorting against the warrant” to lock in profits. It’s legal, efficient, doesn’t tie up cash, and avoids creating buy pressure on the open market.

Here’s a chart showing the current breakdown:


Bottom line: not every warrant holder is waiting for long-term upside. Some are monetizing now, even if it looks irrational to retail investors. That includes shorting into strength and delivering via warrant exercise — it's not theory; it's playbook.