If one adds pure water to a salty water solution, each...

If one adds pure water to a salty water solution, each millilitre of the salty water would have less salt - that is dilution. If one adds shares to a share register, each share becomes a smaller fraction of the ownership of the company - that is share dilution.

If a shareholder buys more shares on market, that is not dilution because each share of the company retains its percentage ownership of the company. What is relevant when change-of-ownership Announcements are made is whether the shares were bought on market, or pursuant to new share issues.

If each share holder received the same ratio of new-issued shares to the shares that they held before, the ownership percentages would remain constant - hence no change of ownership Announcements to the ASX would be required. Each share held would, nevertheless, be diluted, because it represents ownership of a smaller percentage of the company, but each shareholding is not diluted, so the word "dilution" tends not to enter the conversation.

If new shares are issued to some shareholders, then the shareholding of those who do not get an equal ratio of new shares end up with a diluted ownership of the company, and it is that aspect of dilution that can be detrimental to the shareholders who end up with a diluted ownership. They start grumbling if the value of the company has not grown to ameliorate the dilution, and the word "dilution" enters the conversation.

WAK floated at 20c in November 2020, plus each share had options for two shares at 25c in November 2023. WAK's poor performance relative expectations have seen the SP drop to less than 5c. Part of that drop in value was caused by dilution (more slices to the pie). Another issue is that if the poor financial performance of the company represents a stumble in a long-duration setting, only insiders would know the intrinsic value of the company, and may as a result be less concerned, and happy to acquire more shares at low prices.