Futu Holdings (FUTU) Plunges 16.81% Amid Short Sell Orders

Futu Holdings (FUTU) shares plummeted 6.46% intraday, marking the lowest level since January 2025, with a cumulative decline of 27.26% over the past four days.

Futu Holdings Limited recently faced a significant stock price drop of 16.1% during trading on a Friday. The decline continued for a second consecutive day, with a 16.81% loss attributed to broader market pessimism. Additionally, the company's stock was affected by an incident involving abnormal short sell orders. Futu issued an apology for the losses caused by the cancellation of some customers' night orders due to upstream system anomalies, which led to abnormal short sell orders during normal trading hours. Futu has promised to compensate for these losses and improve its services.

This incident has raised concerns among investors about the reliability and stability of Futu's trading platform. The company's response to the issue, including its commitment to compensating affected customers and improving its services, will be crucial in restoring investor confidence. The broader market pessimism, coupled with the technical issues, has contributed to the significant decline in Futu's stock price. Investors will be closely monitoring the company's actions and the market's reaction in the coming days.