Read this now, page-91

You seem to be always asking me to do research for you and to expand your knowledge.
Yet you denigrate every post.
Market Makers registered with Nasdaq can have several functions.Mostly to provide liquidity and act as a intermediary in buying and selling.This can be to sell as much as to buy.It can also be to manipulate a stock.They can also naked short a stock.

Here is some relevant and useful resources for you.


http://www.nasdaq.com/investing/lowdown-on-penny-stocks.stm (From Nasdaq itself)

What Exactly Is a Penny/Micro-Cap Stock?
In this article we'll use the terms "penny stocks" and "micro-cap stocks" interchangeably. Technically, micro-cap stocks are classified as such based on their market capitalization while penny stocks are looked at in terms of their price. Definitions vary, but in general a stock with a market capitalization between $50 and $300 million is a micro-cap.
The Problem for Investors
Penny stocks have been a thorn in the side of the SEC for some time because micro-cap stocks' lack of available information and poor liquidity make these groups of stocks an easy target for fraudsters. There are many different ways these people will try to part you from your money, but here are two of the most common:
Biased Recommendations – Some micro-cap companies pay individuals to recommend the company stock in different media, i.e. newsletters, financial television and radio shows. You may receive spam e-mail trying to persuade you to purchase particular stock. All e-mails, postings and recommendations of that kind should be taken with a grain of salt. Look to see if the issuers of the recommendations are being paid for their services as this is a giveaway of a bad investment and make sure that any press releases aren't given falsely by people looking to influence the price of a stock. (This sounds familiar)

http://en.wikipedia.org/wiki/Microcap_stock_fraud
Some fraud occurs among stocks traded on the NASDAQ Small Cap Market, now called the NASDAQ Capital Market.[3]
Microcap fraud encompasses several types of investor fraud:

• Pump and dump schemes, involving use of false or misleading statements to hype stocks, which are "dumped" on the public at inflated prices. Such schemes involve telemarketing and Internet fraud.[1]

• Chop stocks, which are stocks purchased for pennies and sold for dollars, providing both brokers and stock promoters massive profits. Brokers are often paid "under the table" undisclosed payoffs to sell such stocks.[1][3]

• Dump and dilute schemes, where companies repeatedly issue shares for no reason other than taking investors' money away. Companies using this kind of scheme tend to periodically reverse-split the stock.

• Other unscrupulous brokerage practices, including "bait-and-switch," unauthorized trading, and "no net sales" policies in which customers are prohibited or discouraged from selling stocks.[5]

http://en.wikipedia.org/wiki/Pump_and_dump

Pump and dump schemes may take place on the Internet using an e-mail spam campaign, through media channels via a fake press release, or through telemarketing from "boiler room" brokerage houses (for example, see Boiler Room).[2] Often the stock promoter will claim to have "inside" information about impending news. Newsletters may purport to offer unbiased recommendations, then tout a company as a "hot" stock, for their own benefit. Promoters may also post messages in chat rooms or stock message boards such as ADVFN, urging readers to buy the stock quickly.,[1]

http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp

Essentially, he is an intermediary, who sometimes takes positions in stock, but is really there to function as a liquidity provider.
However, Nasdaq market makers, routinely take positions in stocks, both long and short, and then turn them around for a profit, or a loss, later in the day. They provide liquidity, but they are also more focused on capitalizing on your lot of stock by buying it for their own trading account and then flipping it to another buyer. In any case, market makers will sometimes post phony sizes in order to lure you into buying or selling a stock.