My suspicion is that the banks and mms trading this are using the stock to settle miscellaneous debts incurred in other transactions.

For example, I lent you 10000 shares of XXX to sell short (totally unrelated to EDIG) and you owe me $85.00 for interest. You "trade" a penny stock to me to "pay" your $85.00, the price is dropped on a downtick, and hopefully those shares you sold of (penny stock) at a much higher price will be replaced with someone who has reached max loss tolerance. Meanwhile, I collect shares of penny stock to sell at a lower ask... and the cycle continues.

How many others have put in a bid over the current bid (sometimes even ask) and come up with an unfilled order?

They want us to sell. We all know why.