[ryporter]

NITE may have abused the rules to maintain their short position, but this was definitely not some evil plot to drive down stock prices. The reason that these tickers end up on the "chill list" is because they are massively inflated shares that are literally not worth the paper that they are printed on. Shorting and holding is almost guaranteed to be very profitable strategy.

The difficult part is maintaining your short position, and this is where the real story is. Here, an alternate theory for NITE's behavior is that they were protecting their short position. Stock manipulation schemes are often a cat-and-mouse game where the manipulators are trying to trap shorts in large positions and then squeeze them out of it, forces them to buy back the stock at even more inflated prices. In this case, NITE would have been allegedly abusing the rules to win the game against a cheater.

In my opinion, the manipulators are likely far more at fault for Dilorio's loss than NITE is.