The short term loan share conversion is limited:

"Subject to regulatory approval, the lender has the right exercisable for a period from May 31, 2010 to November 30, 2010 to cause the conversion of any amount of the unpaid balance of this loan into common shares of Crystallex at a price per common share equal to the greater of Cdn$0.20 and 95% of the 5 day volume weighted average trading price on the Toronto Stock Exchange of thecommon shares ending on the date of conversion."

So it is only convertible over a six month period and the price is 95% of the previous 5 day average price. Still could yield them a nice profit though since they should have knowledge about what future action THEY will take.