Pheton stock plunges over 90% after Bear Cave warns of manipulation

Published 29/07/2025, 19:26
© Reuters.

Investing.com -- Pheton Holdings (NASDAQ:PTHL) stock plummeted more than 90% on Tuesday after research firm Bear Cave issued a cautionary report suggesting the company’s shares were being manipulated by overseas groups.

The Bear Cave report claimed that Pheton’s stock is "being manipulated by overseas stock manipulation groups and is at risk of a near-term, severe stock collapse." The research firm specifically pointed to unsubstantiated rumors circulating that Gilead Sciences (NASDAQ:GILD) would soon acquire or partner with Pheton, with a supposed transaction date of August 6, 2025.

According to Bear Cave, these rumors match a "familiar pattern" where overseas stock promoters boost tightly held U.S.-listed Chinese companies based on false M&A claims. The report warned that companies targeted by such schemes often experience sudden intraday collapses of 90% or more.

The dramatic sell-off wiped out most of Pheton’s market value, which had stood at approximately $441 million before the crash. The stock had been gaining attention in recent weeks amid the acquisition rumors that Bear Cave now characterizes as baseless.

Trading volume in Pheton shares surged significantly as investors rushed to exit positions following the report’s publication. The company has not yet issued any formal response to the allegations raised in the Bear Cave report.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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