We all like to have a narrative to explain what happened, and so I have the story of "Matt and the Three Bears". Remember, it's just a story.

It looks like just before 10AM almost 4 million shares were sold between $6.50 and $5.75. Where did these shares come from?

"We have had some unexpected cash come in the door from the early exercise of warrants, which kind of suprised me, but I guess we can let that become public knowledge now..."

Why can Matt disclose this "now"? My story, which I just made up today, is that short sellers hedged with warrants exercised those warrants and sold them in a block just before 10AM, at a prearranged price discount to the market, but still a good profit on that portion of the trade. The buyer then resold those shares into the market in a flood that must have triggered more than a few stop/loss orders. Did they have help from a fly on the wall? It's hard to say, but the sun came up again today, and the bears have fled back into the woods.