i think what you're seeing is the reaction to the stock option review / internal investigation. if they are saying anything about it right now, they likely will have some impact.
earnings we "ok". forcast of q2q being flat for Q3 probably didn't excite people. them burning through cash, probably was not viewed positively.
perhaps people were expecting an upgrade but with the looming stock option review, i suspect that people are realizing that that isn't going to happen at least for a while. further, people are remembering that gs recently downgraded the stock and are starting to believe this.
cutting through the spin, i do think the $5 price is "reasonable" but am not surprised there is additional downside. with 1.5MM shares traded and it trading at 4.35 (4.45 is their 52 week low), it should be concerning that there very much could be additional downside.
on the flip side, we should ask the question of what could be a catalyst for upside - i don't see any...