I guess from a psychology point of view, ordinary people tend to...

I guess from a psychology point of view, ordinary people tend to seek forgiveness and escape from wrong doings when there is a chance. 16.5c is estimated assuming you first hold say $10000 (or any dollar amount x) worth of shares at 30c~40c, make it 35c on average, so you own 28571 shares roughly ignoring brokerage cost for simplicity; then you saw the big drop to 11c and bought another $10000 (or dollar amount x) worth of shares, so that is another 90909 shares in this example, bring total shares to 119480, making the average cost $20000/119480=0.167; for those who put in more money at lower prices (say $15000 worth at 11c) avarge cost will decrease towards 15c.

Hence that's the area where some people want to flee.