ZYXI's 50% Plunge: A Chapter 11 Restructuring Ignites Sector-Wide Panic

Summary
• Zynex (ZYXI) slumps 50.16% intraday to $0.2992, hitting its 52-week low of $0.27
• Company files for Chapter 11 with $22.3M DIP financing from lenders and CEO
• Healthcare sector leader Medtronic (MDT) drops 0.85% as investor caution spreads

Zynex’s stock has imploded following its Chapter 11 restructuring announcement, with technicals and fundamentals painting a grim picture. The filing, backed by new lender financing, signals a desperate bid to stabilize operations amid $71.6M in debt and -$32.38M EBITDA. Traders now face a critical juncture as the stock tests its 52-week floor.

Chapter 11 Restructuring Triggers Existential Sell-Off
Zynex’s 50% intraday collapse stems directly from its Chapter 11 restructuring announcement, which revealed a $71.6M debt burden and -$32.38M EBITDA. The company’s CEO emphasized lender confidence, but investors reacted with panic, pricing in existential risks. The restructuring, while intended to preserve operations, has triggered a liquidity crisis, with the stock now trading at 4.9% of its 52-week high. The absence of merger/acquisition activity and lack of analyst coverage further amplify uncertainty.

Healthcare Sector Bears Brunt as Medtronic Trails ZYXI’s Collapse
The Healthcare Equipment & Supplies sector faces headwinds as Zynex’s collapse reverberates. Medtronic (MDT), the sector leader, fell 0.85% intraday, reflecting broader investor caution. While Zynex’s drop is extreme, the sector’s -0.84% move underscores systemic concerns over debt-laden firms and regulatory pressures. Zynex’s restructuring highlights vulnerabilities in capital-intensive healthcare subsectors.

Technical Divergence and Liquidity Risks: Navigating ZYXI’s Freefall
• MACD: -0.076 (bearish divergence)
• RSI: 48.2 (oversold threshold near 30)
• Bollinger Bands: Price at $0.2992 (lower band), 200D MA at $2.02 (far above)
• Support/Resistance: 52W low at $0.27, 30D support at $1.14

ZYXI’s technicals confirm a terminal bearish trend. The stock is trapped below its 200D MA and Bollinger lower band, with RSI approaching oversold territory. Key levels to watch: $0.27 (52W low) and $0.26 (lower Bollinger band). Aggressive short-sellers may target $0.20, but liquidity risks persist. No options data is available, but leveraged ETFs (if accessible) could mirror the sector’s decline.

Backtest Zynex Stock Performance
The ZYXI ETF has experienced a maximum intraday plunge of -55% from 2022 to the present date. Following this significant event, the ETF has shown mixed short-to-medium-term performance. The 3-day win rate is 49.88%, the 10-day win rate is 50.12%, and the 30-day win rate is 50.81%. However, the ETF has underperformed slightly, with a -0.44% 3-day return, a -0.03% 10-day return, and a -1.47% 30-day return. The maximum return during the backtest period was 0.17%, which occurred on December 15, 2025.

ZYXI at 52-Week Low: Immediate Action Required as Sector Volatility Peaks
ZYXI’s freefall to its 52-week low signals a liquidity crisis with no immediate relief. Traders must prioritize risk management, with stop-loss orders below $0.27. The stock’s technicals and fundamentals align for further downside, while Medtronic’s -0.85% decline underscores sector-wide caution. Watch for a breakdown below $0.26 to confirm the bearish thesis. Immediate action is critical as volatility peaks and liquidity dries up.