Realistically it’s because they’re not going to sell low, but they may just fire a ton of people, max profits, and then sell. There’s a balance of funding to dissuade making that decision, especially when there’s a natural disaster occurring that does have some expiration date.

Because their not going to is not a reason. They should in fact issue more shares, diluting the current ownership. No one wants to buy them because no one has money and so they have to sell extra low.