What caused aztr is stock to crush back yesterday after jumping so high in price

The significant drop in Azitra's stock price can be attributed to the following factors:

1. Reverse Stock Split: On July 1, 2024, Azitra announced a 1-for-30 reverse stock split, which reduced the number of shares outstanding. This move was likely aimed at boosting the per-share price to meet the minimum share price requirements for continued listing on exchanges. However, the reverse stock split did not address the underlying issues that caused the stock's decline, and it may have even exacerbated the volatility by reducing the stock's float and potentially making it more susceptible to price swings.
2. Public Offering and Dilution: Azitra announced a public offering of 6,665,000 shares of common stock and Class A warrants at $1.50 per share, which is expected to raise $10 million. This public offering increases the total number of shares available in the market, which can dilute the stakes of current shareholders and negatively impact the stock price.
3. Market Dynamics: The biotechnology sector is known for its high volatility, and Azitra's stock is no exception. The company's stock has been highly volatile, with a weekly volatility of 81.40%, which means that the stock can experience significant price swings in a short period. The market may have reacted to the public offering announcement as a sign of the company's financial needs, which could have led to selling pressure and a decline in the stock price.
4. Patent Update: While the patent update could be seen as a positive development, it may not have been enough to offset the negative sentiment caused by the reverse stock split and public offering announcements. The market may have already priced in the potential benefits of the patent update, and any positive momentum may have been lost due to the other factors contributing to the stock's decline.

In conclusion, the combination of the reverse stock split, public offering, and market dynamics likely contributed to the sharp decline in Azitra's stock price. Investors may have interpreted these announcements as signs of financial distress or dilution, leading to selling pressure that overwhelmed any positive sentiment from the patent update.