Pheton Holdings Plunges 90% Amid Manipulation Allegations

On July 30, 2025, Pheton Holdings experienced a significant drop of 9.09% in pre-market trading, marking a dramatic shift in its stock performance.

Pheton Holdings, a Nasdaq-listed Chinese healthcare company, faced a catastrophic 90% loss in market value within minutes on Tuesday. This dramatic plunge occurred shortly after a report from Bear Cave, which alleged that the stock was being manipulated by overseas groups through fabricated M&A rumors. The stock, which closed at $30.96 on Monday, plummeted from $31.25 to around $1.65 by the end of the trading day, triggering multiple volatility halts as trading resumed.

The Bear Cave report highlighted the risks associated with overseas stock manipulation groups, suggesting that Pheton Holdings' stock was at risk of a near-term collapse due to these manipulative practices. The report's findings have had a profound impact on investor confidence, leading to the significant drop in the company's stock price.

This incident underscores the vulnerabilities of the stock market to manipulation and the importance of vigilant oversight to protect investors from such schemes. The dramatic fall in Pheton Holdings' stock serves as a cautionary tale for investors and regulators alike, emphasizing the need for transparency and accountability in the financial markets.