US-listed healthcare Chinese stock Pheton (PTHL.US)      saw its stock price plummet nearly 95% overnight (29th), closing at US$1.65, with its market cap shrinking to approximately US$40.8 million. This followed a report by research firm Bear Cave, which suggested that the company's stock might be manipulated by overseas groups.

Bear Cave's report stated that Pheton's stock is being controlled by overseas stock manipulation groups, facing the risk of a severe price collapse in the short term. The researcher specifically pointed out unverified rumors circulating in the market, claiming that Gilead Sciences (GILD.US)      might acquire or collaborate with Pheton as early as August 6.

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Report author Edwin Dorsey mentioned that these rumors fit a familiar pattern where overseas stock promoters inflate the prices of tightly controlled Chinese ADRs based on false merger statements. The report warned that companies targeted by such schemes often experience sudden intraday drops of 90% or more.

Several Chinese ADRs have tumbled so far this year, with Ruanyun Edai Technology (RYET.US)      , which went public in April, collapsing 91% in a single day on July 14. Skincare developer Park Ha Biological Technology (PHH.US)      plunged 93% in a single day on July 8. Jayud Global Logistics (JYD.US)      cratered 96% in a single day on April 2.
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