I apologize for the delay as I was travelling yesterday.
If he starts using his limited incoming BTC to buy from the market at 0.001 etc. prices, what incentive does he have to fulfill his original commitment to repurchase the shares at 1.005? In that case he's going to feel a temptation to stop or delay the buyback so that people will get frustrated and list their shares on the market at a steep loss. (I'm not implying that Korbman would do this, just that the temptation would be there, and that it's a situation that no issuer should be put in.) I strongly believe that in order to avoid potential conflicts of interest, Korbman should not be buying shares on the open market at this time.
You are 100% correct, which is why I've felt it to be unethical to repurchase directly off the market. Not to mention my purchase of Notes off the market doesn't really solve the problem, since technically the Notes are still outstanding (just changing holders), and that doesn't help the overall fund situation. It makes much more sense to focus on the underlying operations (mining, covering expenses, paying debts, etc) than to try and manipulate the market.