Monday's blood bath

The last 2 trading days have been a blood bath on the penny stocks. The Singapore market started its free fall since Friday and it lasted for 2 days, but the damage is severe enough.

Base on what I read from http://www.Tremeritus.com. It started with SGX investigating into Blumont's ascension, coupled with roumors that the Singapore Monetary Authority investigating Asiason on its climb to a SGD2.00 stock. Regardless if 2nd is true, what SGX did next is the needle that break the camel's back. They make sure that anyone who want to buy the 3 questionable stocks (Blumont, Asiason & LionGold) (after a free fall on Friday) need to folk up cash up-front. While the action to stop the shot selling is useful, the "cash up-front" move certainly stop any potential funding to these counters and therefore signing the death warrant for the holders of the stocks.

The move has more devastating effect, it shakes the confidence of the market. which causes the whole markeing into free fall.

My question is: Do SGX know what they are doing? Do they not know that it is natural for stocks to have such fluctuations? I have in the past many times seen counters moving from SGD0.16 to SGD1.50 within a year's time span. It is not once but many times. Are their actions also the cause of hype-stagnation of the Singapore stock market?