"Still, it would have made more sense for them to hold on, as they could have made a killing coming soon."

They can not buy shares until they sell shares as they are limited in the amount they can hold. Also, it is not their business to speculate on share prices. I think too that what they can be offered can terminate at wil. That is, if they don't buy what's available to them, they could be cut off from future purchases if conditions improve for the issuer.