A friend of mine who knows how a little about "trading" "fast money", etc, tells me that this pattern is a classic approach to working a thin float stock where the price is spiked down to capture any stops put in to cover a short position and pick up some cheap shares. Once the stops are exhausted business as usual. maybe?
This stock is essentially where it was in June of 2012, when the short interest was 26m. Today that interest is 13m, so half the short position was eliminated without raising the stock price. A year ago it hit $31 and the short interest was 15m, so while the stock dropped from 31 to below $20 the short interest rose to 26m. I think the shorts are the ones making the money and rule; what do you think?