What happened

Helios and Matheson Analytics (NASDAQ:HMNY) is down big today -- 33% as of 2:30 p.m. EDT. Of course, that's no great surprise. The "MoviePass stock" goes down a lot on a lot of days. What's different about this time is that there doesn't really appear to be any truly new news behind Helios's latest stock slide.

So what's up with Helios?

An illuminated exit sign on a wall in a dark room.

MoviePass investors may be getting up and heading for this sign. Image source: Getty Images.

So what

Here's a theory (if not exactly a new one). On Monday, Business Insider published a report warning that Helios could be preparing to issue "billions more shares" to raise cash to keep its MoviePass subsidiary afloat. But after its recent 250-for-1 reverse split, Helios and Matheson's share count has declined to about 1.7 million.

Even if Helios only issues just 1 billion new shares (let alone "billions"), it will dilute existing shareholders out of about 99.9983% of any interest in the company they currently own. This will basically wipe out anyone who has ever invested in Helios stock and still owns shares.

Now what

Is it any wonder that investors today, who've already lost so much by investing in Helios, aren't sticking around to find out if Business Insider is right about the new share issuance? (Hint: It is right. Helios basically said as much in June.)

The real question is why, having known since June that this dilution was coming, there's still anyone left to own Helios and be selling the stock today?