[hn_throwaway_99]

I totally agree. But it feels like, at least over the past 20ish years or so, that the increased "gambling-ification" of the stock market has made it so these events take longer to resolve (i.e it takes longer for the stock price to go to 0) even if all participants eventually think it will go to 0.

That is, even though the stock will (and, in this case, did) eventually go to 0 with very little statistical probably of an alternative, there is enough volatility in the interim that stock market participants are just playing that volatility in the short term (i.e. trying to time the market, trying to not be "bag holders" in WSB parlance) even if everyone knows in the long term it's going to 0.

[hot_gril]

This one in particular was the perfect storm because it was an EV company during an EV bubble / govt subsidy frenzy, combined with the overall auto market being out of wack at the time, and pandemic-era extremely low rates.