Shares of red-hot cannabis firms plunged by more than one-third on Thursday, marking another short-lived squeeze of short sellers by retail investors aiming to benefit from an expected push to decriminalize marijuana under U.S. President Joe Biden.
Despite gains in premarket trading as European retail investors piled into the rally, U.S.-listed shares of Tilray Inc and Aphria Inc, the two biggest holdings in the ETFMG Alternative Harvest ETF, closed down 49.7% and 35.8%, respectively. Tilray had soared more than 148% while Aphria has surged nearly 58% this week through Wednesday’s close.
Shares of Sundial Growers, up 46% through Wednesday, also turned lower to end with a 19% lo…
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