Back in September 2018 I wrote a column titled: "Tilray: The Trading Equivalent of a Ponzi Scheme". The point was that there are certain stocks that are traded without regard to valuations or fundamentals. They are traded primarily on the basis that someone else is sure to come along and pay a higher price. As long as that dynamic is in place the stock can go to ridiculous levels.
Tilray (TLRY) eventually topped on September 19 when it ran up $300 and then closed at around $215. That was still a gain of $59 for the day but it was a blow off top. The next day the stock dropped 18% and it has not seen those levels since.
Beyond Meat (BYND) is seeing very similar action today. It had a blow off move to $186 intraday but closed much lower with a sizable gain. Today it has dropped 20%.
There are likely to be some aggressive traders looking for another squeeze but the likelihood is that the high of $186 will not be seen again for a very long time. The Ponzi action has lost what makes it works which is the belief that someone else will be willing to pay even higher prices.
This stock has nothing to do with its individual merits. It was extremely difficult and expensive to short, and traders were willing to gamble that other traders would keep pushing.
These sorts of plays always come to an end eventually and are unlikely to make another similar run. Traders are hunting for the next play right now.