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Shares of Rocket Companies are dropping after a 70% irrational pop in the heavily shorted name

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A Reddit logo seen displayed on a smartphone with stock market prices in the background.

Omar Marques | LightRocket | Getty Images

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…



Source cnbc.com

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