How did Little Hero and HmmHuh get trapped?

In reality, $WOK , this small-cap trash healthcare US stock, has a market value of $200 million. And the issuer holds 99.9% of $WOK
, this US stock is a Chinese-made healthcare stock, and looking at its trading market value, it’s indeed around 200k, which is correct.
No wonder Chinese people are clever—through a series of operations, they successfully set a trap for a low-market-cap potential stock, making others fall into it.
How exactly did they operate?
1. First, the issuer carried out a reverse split to keep the stock price at a reasonable level.
Reverse split: for example, you originally hold 100 shares, each worth $0.1, for a total of $10. After a 1:100 reverse split, you only hold 1 share, but each share is worth $10. In reality, your total holdings don’t change; only the number of shares decreases, and the stock price increases.
2. They registered a shelf offering plan worth up to $200 million. This step is the king’s move. To put it simply, the issuer has the right to sell $200 million worth of $WOK
at the current price.
Then you’ll find that every time someone buys the stock, the issuer will flood the market with more shares. As a result, the number of shares in the market increases, but the price keeps dropping. The actual market value doesn’t change much.
When enough people buy, the share count becomes large enough, and the price drops sufficiently low. When it drops to a certain level, the issuer performs a reverse split again, restoring the share count and price to their original levels.
Through this series of operations, the assets of holders are directly diluted by multiple times (the dilution factor equals the reverse split ratio).
By repeating this series of operations, as long as there are enough naive investors, the issuer can keep reverse splitting and selling, until they cash out $200 million.
And this $200 million can actually be requested to be increased again, so in theory, it’s essentially unlimited!
Therefore, in theory, no matter how much you spend buying this stock, it can’t be driven up!