I wish I could give ten big green thumbs up to you Snug, that was very well said. I think a consolidation would definitely take out the daytraders.
I admit, I cyclic traded this stock for a while, although I was never shorting it. I would buy 100k shares, then sell when the price went up 1 cent over a couple of days, repeating the process when the SP fell again, likely the result of shorters. Easy $1k, and when the SP was at 3-4 cents, there was very little upfront cost.
But I could only do this because of the volatility related to the price of the stock. A 1:10 reverse would put the price up to $0.80, leaving a lot more room for price spread, and so reducing the profit potential for the day trader. Might result in a decline of volume, but once the drill results come out for this and other plays, that will not be a problem either.