Why Did ReShape Lifesciences Inc. (RSLS) Plunge 52.2%?

On April 2, 2025, ReShape Lifesciences Inc. (RSLS) experienced a significant drop of 52.2% in pre-market trading, reflecting a sharp decline in investor sentiment.

ReShape Lifesciences Inc. has recently seen a surge in its stock price, attributed to a breakthrough in their weight loss surgery devices. This development has sparked significant interest and speculation among investors, leading to a dramatic increase in trading volume and volatility. The company's stock has been highly volatile, with technical indicators suggesting caution as the stock may be overvalued.

Despite the recent surge, the company's stock has a high short interest, with 367,200 shares representing 50.37% of the float. This indicates a significant level of bearish sentiment among investors, who may be betting on a future decline in the stock price. The high short interest, combined with the recent volatility, suggests that the stock may be subject to further price swings in the coming days.