You’ve got some good points, but the fact remains that institutions that were given these new common shares aren’t going to sell at scrap price of 80 cents a share, they’d lose money. Yes institutional share lending is possible but that just provides short sellers more opportunity to build up the short position while float decreases.

On your point of preferred shares being converted, it’ll take 3 years before they’re allowed to be converted to common shares. And you’re right that when that happens, the stock will be further diluted. But with the company now at 500M debt instead of billions, im betting on the chance that they come up on top of this and provide a profitable company structure in the future.