Wouldn't the agreed purchase of over 3.4 millions shares cause the stock to spike upward. I mean if anyone tried to purchase 3.4 million shares on the open market right now the stock would vault back up to 3 dollars easily. It's not like mvis is trading huge volume right now. I think it is smaller investors dumping the stock to cover losses elsewhere.
There's also the Facebook IPO tomorrow. That could be contributing to selling MVIS. It's true that it is relatively light in volume. It looks as though stops were taken out and those traders have perhaps moved on (to Facebook plays?).
And even if he was short from around $1.70 or so and planning to cover with shares purchased from Microvision at $1.49 - he can make A LOT more money covering with market purchased shares, so unless he wants to give away a million in profit, that's another reason to kill the financing deal.