Soleno Therapeutics Plummets 7.41% as Short-Seller Raises Safety Concerns, Stock Ranks 207th in 208.56% Volume Surge

On August 15, 2025, Soleno Therapeutics (SLNO) closed with a 7.41% decline, marking its lowest price since the March FDA approval of Vykat XR. The stock traded a volume of $500 million, a 208.56% surge from the previous day, ranking it 207th in market activity. The drop followed a short position disclosure by Scorpion Capital, which cited safety concerns over Vykat XR’s risk profile for Prader-Willi syndrome patients.

The hedge fund highlighted unverified allegations of pulmonary fluid buildup and heart failure risks associated with the drug, despite its regulatory clearance. Soleno has yet to respond to these claims, which emerged during premarket trading and intensified selling pressure. The FDA-approved treatment targets hyperphagia, a condition characterized by insatiable hunger, but the controversy has raised investor skepticism about long-term demand.

A high-volume trading strategy focused on the top 500 stocks by daily liquidity generated a total profit of $10,720 since 2022. While returns remained moderate, the approach experienced steady growth amid market volatility. Soleno’s recent performance underscores the sensitivity of biotech equities to post-approval scrutiny, particularly for niche therapies with limited clinical data.