What happened

If you didn't think things could get any worse for Helios and Matheson Analytics (NASDAQOTH:HMNY) stock -- surprise! They could. And they just did.

To refresh your memory, yesterday a hail-mary pass turned into an interception for Helios stock when the company conducted a reverse stock split, compacting every 250 shares of its stock already outstanding into just one new share. In theory, that should have resulted in a share price of $22.50 -- 250 times the stock price just prior to the reverse split. And by lifting Helios shares out of the penny-stock pricing range, it would prevent Nasdaq from delisting the shares.

In practice, however, investors revolted at the idea of holding on to their shares after the reverse split, and sold it off -- at first by 40%, and by the end of the trading day, by a staggering 53%.

Kids hiding under covers

Shareholders can no longer bear to watch the horror show that is Helios stock. Image source: Getty Images.

So what

That would have been bad enough, but this morning, the selling resumed. As of 3:15 p.m. EDT, Helios shares were down another 35.9%. Even worse, if things continue the way they're heading, it might not be much longer before Helios stock is selling back below $1 again, and once again in danger of delisting.

Now what

As far as I can tell, there are no new reports to explain today's continuing sell-off, just an apparent feeling among Helios shareholders that the company is circling the drain -- a feeling that the continually declining share price appears to confirm. Complicating matters further, the lower Helios' stock price falls, the less money it stands to make by issuing new shares to raise cash to stay in business. Which raises the distinct possibility that this is all going to turn into a self-fulfilling prophecy.

Things are looking grim.