Did anyone ever follow that $100 million a hedge fund dumped into the company like a year ago, well into the crap htting the fan? What was that about? Why would you do that?
You can never rule out money laundering. Acquire a big stake of a failing company, claim proceeds from liquidation.
It was for their patents - as one of the other commenters mentioned, in the event that they fold, i.e. now, the hedge fund gains ownership of all their patents.
Did they hold any valuable patents? As I understand the FDA came out and said the device didn't work and beyond that any evidence suggesting it did was not just misguided but fraudulent.