FAT.O Plunges 40% in Pre-Market Mystery: Analysts Speculate on Unseen Triggers

Fat Brands Inc. (FAT.O) opened the pre-market session with a sharp decline of over 40% on November 24, 2025, according to preliminary data. The stock traded at 3.085 million shares, significantly exceeding its average volume, amid no publicly disclosed fundamental catalysts. The sudden drop has raised questions about potential triggers behind the volatility.

Technical indicators suggest the stock entered an oversold territory on the RSI, yet no clear reversal patterns such as head-and-shoulders or MACD crossovers emerged. Analysts speculate the decline could stem from margin calls, short squeezes, or an undisclosed off-market event, given the company’s $8 million market cap and historically low liquidity. Related consumer discretionary stocks showed mixed performance, indicating the move is likely stock-specific rather than sector-wide.

The absence of real-time order-flow data complicates identifying institutional involvement versus retail-driven panic selling. However, the magnitude of the volume spike implies algorithmic or leveraged positions may have triggered rapid exits. Historical volatility in FAT.O suggests sudden price swings are not uncommon, particularly when key stakeholders adjust their holdings.