"I HAD a friend doing investments in start up companies. your bod would not even hear what he had to say. SAID NOT INTERESTED"

Really. And could your friend tell us which aspects of PTSC he found particularly compelling and why he wanted to lend them money? Was it the substantial debt they had already accumulated? The millions of dollars in losses? Let me give you a tip - they were nowhere near thinking about any kind of IP licensing at the time they inked the Swartz deal. They were in the midst of a battle regarding the ownership of the patents with Russell Fish. So that part of the equation had yet to surface to the public in general including any potential lenders. So why did your friend want to lend them money?

"HE had no advantage to sell or short, except he would show has hand."

Again, really? Seems to me he would be more likely to show his hand had he shorted the stock, as that might show up in public reports. However, selling his stock would have kept him under the radar as he would not be required to report the sales. So which do you think the preferred route would have been for him?