WAMU preferred equity

needhelp1700

On Friday the “Piers” preferred stock of WAMU got creamed - down 70%.  Normally, I think buying equity in bankrupt companies is total amateur nonsense, but this drop confused me.  The rationale behind it was that the “Piers” was at the bottom of the ladder and that continuing legal expenses would eat up the remaining capital of WAMU so this class wouldn’t be paid.
What’s confusing me about this is that the delay is being caused by the common equity class (obviously below the Piers class) who seem to have some small but reasonable chance of getting paid.  I believe that (among many theories of the equity class) is that they can go to trial against the four hedge funds accused of insider trading, get a ruling that their trading was insider trading, and then get the bankruptcy judge to vacate their claims in bankruptcy.  All their claims would then be “equitably redistributed” down to the equity holders.  Presumably, they would make the entire Piers class whole prior to flowing to the common.  The judge seems to believe that these claims have some merit.
Meanwhile, the equity is trading at 0.07/share which in the world of bankrupt shares means the market has decided it is worthless and just idiots are buying it.  It seems to me that the whole world has decided the judge is wrong and that the claims of the shareholders will go nowhere.  I’m just not buying this - it really looks like there was some pretty blatant insider trading going on with these hedge funds and they really might lose if they go to trial.
Where am I wrong in this?  On Monday should I buy up the entire Piers class and become a player in the WAMU bankruptcy?