You are referring to the shorting don't you. It is frankly irrelevant as it only results in temporary price correction of the stock to its "true" value. Furthermore, as shorters have to buy the stock at some point, it helps to ease price fall, helps LT to get out with not so big losses.
In BLA case, the "true" value is zero. and it was that value when SP was $14.
The shorters did not cause the SP to plummet from 14 bucks to 0.19, the report did not cause that. That was at some point inevitable giving how the company operated, how scammy the management was. They could continue the business longer, pumping the SP higher if not the report, but that would be at the even higher cost to holders. The end was inevitable as the management had no plans to make the company work except to rely on increasing Share Price.
so shorters did help. they brought to the attention company which was failure but was seriously overvalued by the market.
BLA Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
