Great visualization, thanks! The underwater options is scary. What I wonder though is what happens if the exercise price is larger than the stake is worth. Sin

Great visualization, thanks! The underwater options is scary. What I wonder though is what happens if the exercise price is larger than the stake is worth. Since nobody would exercise their options, would not that money be split over the rest of the stake holders? So when the ROI is negative for some parties, it should grow on the other parties. Isn't that so?