I'm not really sure what you're talking about 'bizarre'. Let me recap.
OSTK sued Gradient Analytic in 2005, along with Copper River partners. In a matter not directly related to Overstock, the SEC's SF office, initiated an investigation against Gradient, and subpoenaed Greenberg and Cramer. I've just gone thru the subpoena process, and although different at the SEC, it is fair to conclude these were for cause.
In an very unusual move given the short period of time, the SEC DC office dismissed Gradient, and over rode the subpoenas which, according to a now former staffer in SF, 'demoralized the agency.
Skip, skip, Madoff loots, conservatively 17bb, the sec snoozes. And I'm showing you emails that conclusively prove a reporter aided the now defunct Copper River with destroying a company. I now say, stay tuned, bigger names coming, and you say, 'bizarre'.
Seems to me pretty cut and dried.