RE: Reason for Drop You may be right, here's my take on the reason for the drop.
Jan 9, around 11am - gauge the pulse of the market with buy orders - buying wasn't pushing the market higher, start shorting, flood the market with supply, any buying kept the price down because the shorts are opening up positions.
Jan 9, 5:12pm, operation update comes out,
Jan 10, institutions started adding more supply to the market by selling (lighten up positions), pushing the price lower, towards $3, stop losses stared to be taken out adding more supply, then at 10:10am around ($2.80) shorts started covering their positions, then amateur short sellers tried pushing the price down again just to get squeezed @ 11:05.
Thats how i read it, thats the reason for the decline in stock price.
Good short play, nice entry to go long.