The hedge funds are probably sorry they bought into this company especially since it was before disclosure of a large customer leaving.
Also, as far as the insiders buying stock that are directly involved in management in this company the big problem is that these are the "smart" money guys whose judgement have allowed this company to get where it is today, so to assume that they are clever stock buyers when they are maybe not proving to be the most clever business managers makes no sense to me.
If they can't run the company better than this than why get excited about their investment choices and stock purchases????
You make many valid points. My purchase at $1.55 was based on pure technicals. I believe the gap to $3 will be filled. Also, I do not believe Diker Management has ever run this company. I would like to know why they are buying.