Chinese Stock Loses 90% in Minutes After Pump-and-Dump Warning

Pheton Holdings Ltd., a Nasdaq-listed Chinese health care company, lost 90% of its market value in a matter of minutes on Tuesday, hours after a Bear Cave research report said it may be the target of a pump-and-dump scheme.

The shares closed trading Monday at $30.96 and opened Tuesday at $31.25, drifting slightly higher. Then, around 12:26 p.m. in New York, they suddenly sank 11% and triggered a volatility halt. When trading resumed 90 minutes later, the stock’s plunge reached 89% before trading was halted again.