The action last night is not all gloom and doom. It is not "dilutive" since the shares exist already and beware of over "shorting" since the shares do not need to be sold.
It is homework for BEBE. it could be a preliminary action to clean up before a takeover and naturally eliminate and provide an out for the majority of the shares and the founder.
Interestingly, someone can "negotiate" a complete commanding share-hold with 1000 million bucks.
One concern would be to negotiate a reasonable price with Manny to take his shares lock-stock and barrel, and own a 55% share-hold majority. Then, just do a "take under" for a very low price - probably cash on the books in the treasury - to get the other 45% of the shares at a low price. there is nothing the small shareholders will be able to do.