Here's how PIPE financiers ply their evil trade and cost investors
Here's the way they do it. They let the stock pump on great news inflate the stock and encourage this pump, and as it rises dramatically they slowly start shorting shares. Once they are done shorting millions of shares, they let the company announce the PIPE dilutive financing, which is typically several dollars under where they have been shorting, which guarantees them an instant profit, since they can cover all their bubble shorts with these new shares the company gives them as a huge discount. Live and learn, I have.