Pheton Holdings Plunges 11.24% Amid Manipulation Allegations

On August 1, 2025, Pheton Holdings experienced a significant drop of 11.24% in pre-market trading, sparking concerns among investors and analysts alike.

The recent collapse in Pheton Holdings' stock price can be attributed to allegations of market manipulation by overseas scammers. These allegations, coupled with unsubstantiated acquisition rumors, have led to a wave of selling pressure on the stock. The Bear Cave, a prominent short seller, released a report warning investors about the potential risks associated with Pheton Holdings, further exacerbating the sell-off.

The Bear Cave's report highlighted a pattern of manipulation by overseas groups, which has been observed in other Chinese companies trading on the Nasdaq. This pattern involves artificially inflating the stock price through false acquisition rumors and then selling off the shares at inflated prices, leaving investors with significant losses. The report has raised concerns about the integrity of the market and the potential for similar schemes to target other companies.

Investors who recently invested in Pheton Holdings are advised to exercise caution and consider the potential risks associated with the stock. The Bear Cave's warning serves as a reminder of the importance of conducting thorough due diligence before making investment decisions. As the market continues to react to these developments, it remains to be seen how Pheton Holdings will navigate this challenging period and regain investor confidence.