Think about it: A pennystock is a company that's usually bankrupt, where shares trend under a dollar. Say they hype up the company to increase the sale of that stock. This is the equivalent to a girl hitting her early 20s and going to the club with full blown makeup on. She get's hyped up, her worth increases x4+. Her stock is suddenly worth $20. She hits the wall, and suddenly men realize the hype is false, and sell their asset. The poor white knight is like the guy who bought too much of the stock and is now stuck with a depreciating asset.