A Reddit user with a somewhat vulgar screen name shared a screenshot on Wednesday of a 95% loss on the Chinese coffee chain’s stock. The user, who described themselves as a 28-year-old European fitness coach, said they were intrigued by Luckin’s 300% gain from November to January. After they piled more than €235,000 ($264,000) into the company’s shares, disaster struck.
Few high-profile stocks could’ve driven as much interest and subsequently minted such incredible losses. Luckin’s shares nosedived 80% on April 2 after an internal investigation found that the company’s chief operating officer fabricated sales totaling 2.2 billion yuan ($310 million) throughout 2019. The coffee chain told investors that past guidance and earnings releases were no longer reliable.