Sonnet shares fall 50.16% intraday after stockholder approval of business combination with Hyperliquid Strategies Inc.

Sonnet BioTherapeutics Holdings, Inc. (NASDAQ: SONN) plunged 50.16% intraday following the announcement that its stockholders approved a business combination with Hyperliquid Strategies Inc. and Rorschach I LLC. The press release detailed the approval of the merger at a special meeting, with final voting results to be filed with the SEC. While stockholder approval is typically a positive milestone, the market reacted negatively, likely due to concerns over regulatory complexities, potential conflicts of interest, and uncertainties surrounding the deal’s execution. The merger’s dependence on SEC filings, coupled with the company’s micro-cap status and prior institutional sell-offs (e.g., Mmcap International’s 100% position reduction), may have triggered a liquidity-driven selloff. The sharp decline suggests investor skepticism about the strategic or financial viability of the combination, despite formal approval.