Facebook: on the precipice of an ignominious threshold.

Facebook's IPO, priced at $38 almost exactly three months ago, is now about to drop to half that, closing today at $19.05 after dropping $0.82.  And yes, it will drop a lot more.

Yesterday a group of restricted stock (271M shares) whose limits expired, hit the market, and volume hit 157M shares -- the largest since the second day (168M shares) following Facebook's IPO.  There are several more expiration dates coming up, as Seeking Alpha has noted -- see the abridged chart, originally from SA.

Public Date	# Shares of Common Stock
August 16, 2012	271,123,815
October 15 - November 13, 2012	133 million + 55 million + 55 million shares
November 14, 2012	1.2 billion + 20 million shares
December 14, 2012	149,432,006
May 18, 2013	47,315,862

As noted by SA, "We believe Facebook (FB) stock is facing pressure similar to what occurs when a company issues a "death spiral" convertible security."  Shorts are growing.

So uh...anyone else amused that Reed Hastings (CEO of Netflix) as a board director of Facebook, bought nearly 48,000 shares of FB at $21.03, on August 7th?  FB opened that day at $22.20, but closed at $20.72.  He lost money the moment he bought his stock.  In just over one week, he's already lost 9.4%.