T2 Biosystems (NASDAQ:TTOO) shares fell over 15% at the open on Thursday after snapping its three-day winning streak the day before, down 3.8% at $0.57 at Wednesday’s close.
The company, which develops in vitro diagnostics tools for laboratories and hospitals, has seen its stock rally more than 500% in August on meme-like buzz.
Meme-stock traders believe the stock could skyrocket should T2 Biosystems (NASDAQ:TTOO) gain United States Food and Drug Administration (FDA) approval for diagnostics tools in its development pipeline, according to investors’ discussions on the social media platform Reddit.
The sell-off that started on Wednesday appears to have been prompted by institutional investors increasing their short positions in the company, per the Reddit discussion.
T2 Biosystems (NASDAQ:TTOO) shares were down 15.6% at US$0.48 shortly after the opening bell in New York. Despite this investor pullback, the stock has gained about 358% over the last month.
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