Fly-E Stock Craters Days After The Bear Cave Warns Of Pump-And-Dump

Fly-E Group, Inc. (NASDAQ:FLYE) stock experienced a massive collapse on Friday, crashing by approximately 87%. The crash follows a report from The Bear Cave alleging the stock was part of a "pump-and-dump" scheme. 

• FLYE stock is crashing Friday. See the real-time chart here. 

The Pump: 

Edwin Dorsey, known for his investigative financial newsletter “The Bear Cave,” earlier this week accused Fly-E of orchestrating a “pump-and-dump” scheme and manipulating its stock with the aid of overseas actors. 

Read Next: Michael Burry Joins Warren Buffett Going Long On UnitedHealth Stock 

The Bear Cave issued a separate report last week pointing to six stocks that could be targeted by the pump-and-dump scheme in the near future. They were: 

• Fly-E Group, Inc. 
• Mint Incorporation Limited (NASDAQ:MIMI)
• Epsium Enterprise Limited (NASDAQ:EPSM)
• QMMM Holdings Limited (NASDAQ:QMMM) 
• Star Fashion Culture Holdings Limited (NASDAQ:STFS)
• Cuprina Holdings Ltd. (NASDAQ:CUPR)

Dorsey took to social media with fresh concerns Thursday evening after noticing unusual price action in after-hours trading. 

"It looks like overseas stock scammers are manipulating FLYE and CUPR after hours," he wrote.  

"I believe they primarily do this to try and trigger short liquidations and deter short-sellers. It’s a good reminder to keep these positions small," Dorsey added. 

The Dump: 

FLYE stock fell from levels near $7.80 on Friday morning to as low as 66 cents per share before settling around 93 cents in heavy trading. The drop erased over $100 million in market capitalization and sparked debate about the company’s future.

On Friday afternoon, Dorsey reminded investors of his warning about FLYE two days prior. 

"Two days ago, I wrote that FLYE “is being manipulated by overseas stock scammers, is in the end stages of a pump-and-dump scheme, and is at risk of a near-term, severe stock collapse,”  Dorsey wrote on social media.  

"Now, the stock is halted and down ~88%."  

FLYE Stock Price: Fly-E shares ended Friday's session down 87.11% at $1.00, according to data from Benzinga Pro. 

Read Next: 

• Should You Buy The Dip On These Large-Cap ‘Left-Behind’ Stocks Like UnitedHealth And The Trade Desk? 

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