1. By increasing the share price it increased their ability to...

1. By increasing the share price it increased their ability to raise money i.e the $2+ options that asic stopped them issuing. You can draw your own conclusions on why they would want to raise more

2. I'm not sure about this. I do wonder if an inspection of the books, especially from the early days would shed some light on his real abilities as a trader

3. Multiple possible reasons, some fair some less so.