I agree with you Bfw, and further why would Eastern throw more money at this if they thought they were going to end up with the IP and tax losses in a short time?  Wrt Hepalink who as we know has no downside protection, why would they put more money into something that was going south?  I think it is a good sign that both these insiders, who have direct access to all the information possible, put more money into RVX at this juncture. 

Wrt the shorts what I speculate happened is that someone(s) on the Bloom Burton side of the financing knew that with this thinly traded stock that a small financing would likely spook some investors so they shorted the stock right after the financing was announced and piled on that fear knowing they could cover with the shares they just bought. Early shorters would be in a total profit position by this action and then be left with their warrant to keep or sell for more profit and cash to either keep or buy RVX shares much cheaper than the financing. Who knows for sure but this would seem to make the most sense to me. 

I think the biggest mistake management made was doing this financing without insisting on the Bloom Burton side being subject to the same 4 mos hold period that Eastern and Hepalink (the real investors) are subject to. Best efforts financings are always sketchy for spec stocks, having no hold period just makes it worse.