Not wrong. When a project has very good long term potential,...

Not wrong. When a project has very good long term potential, influential players don't give a shit if the SP is low while they wait. In fact, they like it low so they can seize more control. Many investors do not see things in terms of a few pips but rather several years to a decade. They average out their gains across that time period and will happily take a temporary paper loss to accumulate more.

These sort of games are usually only played on genuinely good resources, because the risk for them playing these games goes way up when done on shitty penny stocks. As you can imagine doubling down on a paper loss only works if it eventually comes good.