Why Luckin Coffee Stock Rocketed Higher Today
On May 19, Luckin disclosed that it received a delisting notice from Nasdaq, placing its stock's ability to continue trading on the stock market in question. Luckin's stock would go on to hit an all-time low of $1.33 on May 22, representing a brutal decline of more than 97% from its all-time high back in January. This can accelerate upward moves in the share price of heavily shorted stocks, such as Luckin, particularly when highly leveraged traders are forced to close out their short positions due to unexpectedly large upward price swings.
