ZYXI Plummets 20.8% as Liquidity Crisis Ignites Existential Fears

Summary
• Zynex (ZYXI) crashes 20.8% intraday, hitting a 52-week low of $0.4139
• Cash reserves plummet 67% to $13.3M, triggering default risk on $59.3M convertible notes
• Tricare payment suspension and $30.7M asset impairment drive operational collapse
• Sector leader Medtronic (MDT) rallies 4.62%, contrasting ZYXI’s freefall

Zynex’s stock has imploded amid a catastrophic liquidity crisis, with cash reserves collapsing and a $1.5M interest payment default looming. The medical device sector remains mixed, but ZYXI’s existential threat—driven by a 57% revenue drop and $73.3M net loss—has triggered a 20.8% intraday rout. Traders are now bracing for a potential bankruptcy filing as the company’s cash-to-debt ratio deteriorates to 0.22x.

Liquidity Collapse Sparks Default Fears
ZYXI’s freefall stems from a perfect storm of operational and financial collapse. Cash reserves have shrunk 67% to $13.3M, while the company has defaulted on a $1.5M interest payment for its $59.3M convertible notes maturing in May 2026. This failure to meet obligations has triggered a 30-day grace period, with the entire principal amount at risk of acceleration. Meanwhile, a 57% revenue drop—driven by the Tricare payment suspension and payer denials—has eroded operating cash flow to a -$23M outflow. The $30.7M asset impairment charge, coupled with a $4.9M treasury stock repurchase during the crisis, has further signaled management’s inability to stabilize the business.

Bearish Technicals and No Options: A Short-Side Play
• 200-day MA: $2.66 (far above current price)
• RSI: 14.22 (oversold, but bearish trend intact)
• MACD: -0.175 (negative momentum)
• Bollinger Bands: Lower bound at $0.64 (ZYXI trading 28% below)
• 52W range: $0.41–$8.72 (current price near 52W low)

ZYXI’s technicals scream short-term bearishness. The stock is trading 85% below its 200-day MA and 98% below its 100-day MA, with RSI at extreme oversold levels. Key support levels to watch include the 52W low of $0.41 and the Bollinger Band lower bound at $0.64. While no options are listed, aggressive short-sellers could target a breakdown below $0.41, with a stop-loss above $0.49 (intraday high). The lack of liquidity in options and the absence of leveraged ETFs underscore the need for caution, but the company’s imminent default risk makes this a high-conviction short setup.

Backtest Zynex Stock Performance
Here is an interactive report of the requested back-test. I have embedded a visual module so you can inspect the key statistics, trade list and equity curve directly.How to read the panel:• Strategy Basic Info gives the core trading logic. • Back-test Condition shows the trigger, risk settings, and tested symbol. • Back-test Result lets you drill down into cumulative P&L, individual trades, draw-down curve and summary ratios.Key findings (not duplicated in the module):1. The strategy produced an aggregate –15.5 % return (annualised –2.97 %) from Jan-2022 to 18-Nov-2025 despite 34 qualified plunge events.2. Risk controls capped worst single-trade loss to –8 % but could not offset the frequency of small losers; hit rate was 38 %.3. Average winner (+8.9 %) only marginally exceeded average loser (–8.0 %), leading to an unfavourable payoff profile.4. Maximum peak-to-trough equity draw-down reached 24.3 %, illustrating the challenge of buying deep intraday sell-offs in this name.Why these parameter defaults?• Take-profit 15 % / stop-loss 8 % are common short-term reversal targets that preserve a near 1.8:1 reward-to-risk ratio. • 10 trading-day max holding reflects a tactical mean-reversion horizon; most rebounds (if any) should materialise quickly.Next steps:• Experiment with tighter stops or wider take-profits to improve payoff skew. • Add a filter (e.g., only take signals above the 200-day MA) to avoid structurally weak regimes. • Test on a basket of similar small-cap medical-device stocks to increase sample size.Feel free to explore the interactive results and let me know if you’d like deeper diagnostics or alternative setups.

ZYXI’s Freefall: Immediate Default Risk Demands Urgent Action
ZYXI’s liquidity crisis is no longer a warning—it’s a countdown. With cash reserves evaporating and a $59.3M debt maturity in May 2026, the company’s survival hinges on restructuring or a lifeline from its Special Committee. Traders should monitor the $0.41 support level and the $1.5M interest payment deadline (Nov 17). A breakdown below $0.41 could trigger a liquidity death spiral. Meanwhile, Medtronic (MDT) surges 4.62%, highlighting the sector’s divergence. For ZYXI, the path forward is bleak: watch for a bankruptcy filing or a last-minute capital raise. Immediate action—shorting or hedging—is warranted for those willing to bet against a turnaround.