A Reddit logo seen displayed on a smartphone with stock market prices in the background.
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Shares of Rocket Companies dropped more than 11% in premarket trading Wednesday following a surprise rally in the previous session, as Wall Street analysts raised red flags on the frenzy trading.
The online mortgage provider’s stock came under pressure after soaring more than 70% Tuesday for its bear day ever with no apparent news. Rocket is one of the most heavily shorted names by hedge funds, with nearly 40% of its available shares sold short, which may have made it attractive to the Reddit trading crowd.
Analysts started to urge caution in the heightened…