VanimalCracker

VanimalCracker t1_j6veozz wrote

They don't have stock. It's a private company. It caused their valuation to crumble. The short seller was like "there's no way anyone would pay that price per share" and the market was like, yep good call. That does seem overpriced. So their valuation fell.

So now the valuation fell to a point where the owners declined to sell shares to the public at all. They think the shares are worth more than what the marker will buy and the market thinks they are worth less than the company asks.

Spoiler: the market is right. Their valuation doubled in a year. Yes, the valuation tanked ~50% in a few days, but it's still +8-9% in 12 months. It was extremely overvalued.

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