We’re investigating Liquidia Corporation ($LQDA) after shares fell roughly 57% following an adverse YUTREPIA patent ruling. The investigation concerns whether investors were adequately informed about the risks of an adverse ruling and potential injunction.

$HESM is down roughly 14% today after announcing a deal it calls “transformative.” And on paper, some of it sounds pretty good. Hess Midstream will become an independent, multi-basin company, acquire Chevron’s DJ Basin gathering and storage assets, and reduce its outstanding share count by nearly 40% when Chevron contributes its ownership stake. But there’s a catch. As part of the deal, Hess Midstream is also agreeing to lower the tariffs Chevron pays for gathering and processing in the Bakken from 2027 through 2033, while extending those agreements through 2045. Chevron says the revised terms should cut its Bakken midstream unit costs by roughly 50%. That’s a big win for Chevron. For Hess Midstream, it means giving up some near-term economics in exchange for a longer-term relationship, new assets, and a much smaller share count. And you can see some of that trade-off in the numbers. HESM expects $850 million to $950 million in Adjusted EBITDA in 2027, compared with updated 2026 guidance of $1.225 billion to $1.25 billion. That’s about a 27% decline at the midpoint. HESM also expects Bakken volumes to fall about 5% in 2027, even with minimum-revenue commitments set on a two-rig program. The company plans to hold its 2027 distribution flat at the fourth-quarter 2026 level and expects leverage of 3.75x to 4.0x. Management, however, expects the transaction to be accretive on an Adjusted EBITDA per share basis. So yes, the company gets new assets, independence, fewer shares outstanding, and a longer-term relationship with Chevron. But the market also just got a look at what HESM expects 2027 to look like.

$QXO has lost roughly $1.3 billion in market value today. Shares are down about 10% to $10.90, pushing the stock to a new 52-week low. And there’s a lot happening here. RBC cut its price target on QXO this morning from $27 to $18, while maintaining an Outperform rating. That’s a 33% reduction in where the bank thinks the stock could ultimately trade. But QXO is also sitting directly in the path of one of the biggest stories in markets right now: higher interest rates. The company has spent billions building one of North America’s largest building-products businesses, including its acquisition of TopBuild, announced at $17 billion and completed in July. Higher rates hit that story from two directions. They make mortgages more expensive, putting pressure on housing activity and demand for roofing, insulation, lumber and other building products. And QXO itself used billions in debt to help finance the TopBuild deal, including a $3 billion term loan and $3 billion of senior notes at 6.5% and 6.875%. Meanwhile, the 10-year Treasury yield is back above 5.3% today. QXO is now roughly 61% below its 52-week high of $27.61. RBC still sees $18. The market is currently saying ~$10.90.

One of today’s biggest market tests hits at 1:00 PM ET. The U.S. Treasury is auctioning $39 billion of 10-year notes with the 10-year yield already around 5.35%. The question is simple: How much demand is there for U.S. debt at these yields? Strong demand could help pull yields lower. Weak demand could send them even higher. Should be an interesting afternoon.

Webull ($BULL) shares are down roughly 19% after a congressional investigation concluded that the brokerage’s ties to China pose a national-security risk. And the details are worth looking at. According to the House Select Committee on China, Webull’s ownership structure, technology workforce, financing and operations remain deeply connected to China. The committee found that critical parts of Webull’s backend technology and platform operations are handled by a mainland China-based subsidiary, raising concerns about whether sensitive U.S. customer data could potentially be subject to Chinese laws. And this isn't a small operation. Webull oversees roughly $24.6 billion in customer assets. Its own annual filing shows that 863 employees, or 62% of its workforce, were employed by its mainland China subsidiary at the end of 2025. The committee also alleges that Webull previously told investigators it had no offices or employees based in China. The committee says its concerns escalated further in October 2025, when Webull began carrying customer cash directly. Webull strongly disputes the report, calling its conclusions inaccurate and unsupported. The company says its U.S. operations are based in Florida and New York and that U.S. customer data is stored in the United States. Importantly, the report itself imposes no penalties, and the concerns about Webull’s infrastructure do not establish that Chinese authorities actually accessed U.S. customer data. But the market isn't waiting around for the argument to be settled. For a brokerage built around helping people trade volatility, Webull is getting a pretty brutal lesson in it today.

🔻 DROP DESK: DAMAGE REPORT | OCTOBER 6 A much calmer day on the surface... Treasury yields moved lower, oil reversed an early decline, and the S&P 500 and Nasdaq closed at record highs. Underneath the surface? A very different story. Here are some of the biggest drops that came across our desk today: $XRPN -50.32% After surging 273% last week, the SPAC taking XRP treasury company Evernorth public gave back a huge chunk of the move just one day before the merger is expected to close. $AVBP -46.98% ArriVent BioPharma plunged after its Phase 3 lung cancer trial missed its primary endpoint, despite some encouraging results elsewhere in the data. $TXG -17.47% 10x Genomics hit a new 52-week high this morning before sharply reversing, as excitement around its new Atera platform met a very different afternoon. $GRAL -10.90% GRAIL pulled back after a huge run around Galleri, with the multi-cancer early detection test still awaiting a final FDA decision.

$GRAL is down roughly 11% today. But to understand today's drop, you have to look at what happened before it. The stock has been repriced dramatically around one question: Will the FDA approve Galleri? GRAIL shares surged roughly 55% in the week around the September 23 FDA advisory committee meeting for Galleri, the company’s multi-cancer blood test. And they kept climbing afterward, closing yesterday at $154.08. Today, shares are trading below $140. There doesn’t appear to be a new negative company announcement behind the move. The bigger story is what investors are now pricing in. The FDA panel voted 10-0 that Galleri was safe. But the effectiveness vote was much closer at 6-4, while the overall benefit-risk vote passed 7-2 with one abstention. And importantly, the panel vote wasn't final approval. Galleri's application remains under FDA review, with a decision still ahead. Meanwhile, GRAIL generated $44.7 million in Q2 revenue and reported a $110.2 million net loss. So after the enormous run, investors aren't simply betting that Galleri is promising. They're increasingly betting on what happens next: FDA approval and the commercial opportunity that could follow. That’s a much higher bar. The Galleri story hasn't suddenly changed. The price investors are willing to pay for it has.

$AVBP was a $28 stock yesterday. Today, it’s trading around $14. ArriVent BioPharma has lost roughly half its value after a pivotal Phase 3 lung cancer trial failed its primary endpoint. The FURVENT trial tested firmonertinib against chemotherapy in patients with EGFR exon 20 insertion-mutant lung cancer. At the higher 240 mg dose, independent review found median progression-free survival of 11.0 months versus 9.5 months for chemotherapy. Better, but not statistically significant. The lower 160 mg dose didn't beat chemotherapy on independent review either. But here's where it gets interesting. By investigator assessment, the 240 mg dose showed 11.1 months versus just 7.1 months for chemotherapy, with a much stronger hazard ratio of 0.61. That's a notable gap from the independent review used for the primary endpoint. The trial was open-label, meaning investigators knew which treatment patients were receiving. ArriVent is now reviewing the full dataset to determine the path forward. So the drug didn't simply produce bad results. It produced some encouraging signals, but failed the statistical test its pivotal trial needed to pass. In biotech, that distinction can erase half a company's value in hours.

$TXG is down roughly 14% today after briefly hitting a new high this morning. 10x Genomics climbed as high as $102.81 before reversing below $85, a swing of more than 17% from the intraday high. There doesn’t appear to be one obvious piece of bad company news behind the move. But expectations have gotten very high, very fast. Much of the excitement centers on Atera, 10x’s new spatial biology platform. Booked orders have already greatly exceeded the roughly 40 instruments the company expects to ship this year. Despite that demand, 10x kept its shipment target at roughly 40 as production ramps, with most expected in Q4. Meanwhile, Q2 revenue was $151 million, growing about 3% year over year excluding settlement revenue. Full-year guidance remains $610 million to $630 million. Management has also said customers are moderating purchases of existing spatial products ahead of Atera, contributing to an expected sequential revenue decline in Q3. None of that means Atera won’t live up to the excitement. But after the stock’s recent run, investors are already paying for a lot of that future. $102.81 this morning. Below $85 hours later. Sometimes expectations simply get very high, very fast.

$XRPN is down roughly 50% this morning after one of the wildest SPAC runs of the year. Armada Acquisition Corp. II, the SPAC taking XRP treasury company Evernorth public, surged 273% last week. Shares went from $10.58 to a $39.42 Friday close, briefly touching $53 intraday. Now a huge chunk of that move is reversing just one day before the Evernorth deal is expected to close. So what are investors actually buying? Evernorth expects to hold approximately 473 million XRP at closing. At Monday’s ~$1.51 XRP price, that stake was worth roughly $714 million. The transaction is also expected to bring in approximately $300 million in gross cash proceeds. But some of Evernorth’s XRP is already underwater. The company spent $214.1 million buying 84.4 million XRP in late 2025 at an average price of roughly $2.54. At Monday’s XRP price, that tranche was worth approximately $127 million. Then there’s the SPAC itself. Armada held $241.2 million in its trust at the end of June. Evernorth now expects approximately $48 million of trust proceeds to remain in the transaction. Comparing those figures suggests roughly 80% of the trust money will be returned to shareholders through redemptions. That matters because redemptions can leave fewer public shares available to trade, potentially contributing to unusually large price swings. The merger is expected to close tomorrow, Oct. 7, subject to remaining closing conditions. The combined company is expected to begin trading as Evernorth on Nasdaq under $XRPN on Oct. 8. 273% up last week. Roughly 50% down today. And the deal hasn’t even closed yet.

Stocks are at or near record highs. The lowest-rated U.S. companies are borrowing at roughly 17%. Both of those things are happening at the same time. If you want to understand where the real stress is building in this market, start with credit.

🔻 DROP DESK: DAMAGE REPORT | OCTOBER 5 Stocks and bonds are still telling two very different stories. The Nasdaq gained 1.05% and the S&P 500 rose 0.67%, while the 10-year climbed to 5.310% and the 30-year to 5.665%. Oil moved the other way, with WTI down 1.8% and Brent down 1.9%. Stocks keep shrugging off higher yields. The bond market keeps testing how long they can. Meanwhile, there was plenty of damage underneath the surface. $NXH -25.36% Neighborhood Intelligence sank after announcing a $45.5M equity raise and the mutual termination of its proposed Fathom merger. $VELO -14.55% Velo3D fell following the departure of CFO James Suva. The company said his exit was not related to a disagreement over its operations, policies or practices. $BRUN -13.20% Boost Run fell despite recently reporting 270% YoY Q2 revenue growth to $31.1M and $1.9B in total contract value, alongside a roughly $75M GAAP net loss. $CAPR -13.07% Capricor dropped after releasing positive 24-month Deramiocel data. The results came from an open-label extension, with the FDA decision now set for November 22.

$CAPR released “positive” data this morning. The stock is down ~14% as of this writing. At first glance, the numbers look encouraging. Patients who spent their first year on placebo saw upper-limb function decline by 2.05 points. After crossing over to Deramiocel, the decline slowed to 0.49 points in year two, a 76% reduction in the rate of decline. Capricor also reported that both treatment groups declined more slowly over 24 months than a natural-history model predicted. But there’s an important wrinkle. These are open-label extension results, comparing patients with their own prior year rather than a new randomized placebo-controlled group. The natural-history comparison was descriptive only, with no matching or statistical testing. And Capricor notes that no alpha was allocated to the open-label analyses and the extension wasn’t powered for Month 24 comparisons. That matters given the regulatory history. In July, an FDA advisory committee voted 9-3 that the evidence did not demonstrate substantial effectiveness for Deramiocel in DMD cardiomyopathy. The committee viewed the upper-limb evidence somewhat more favorably, though the vote itself covered only the cardiomyopathy indication. Capricor has since submitted the 24-month extension data and additional analyses supporting a refined upper-limb indication. The FDA accepted it as a major amendment and moved its decision date from August 22 to November 22. So yes, the headline today is positive data. The question now is whether it’s positive enough to change the regulatory picture.

$BRUN is down ~13% today, adding another wild swing to what has already been a volatile few months for Boost Run. On paper, there’s plenty for investors to like. Its first earnings report as a public company showed Q2 revenue jumping 270% YoY to $31.1 million, while total contract value reached $1.9 billion. And Boost Run isn’t slowing the buildout. The company expects its first 20 MW of new capacity online in Q4, with plans to scale to 111 MW across two additional sites in 2027. But there’s another side to the story. Boost Run also reported a roughly $75 million GAAP net loss in Q2, largely tied to one-time, non-cash charges from going public, while recent filings have disclosed insider selling. That leaves today’s move without an easy headline. There’s been no new company press release since September 17, yet the stock is taking another double-digit hit. For a company trying to turn massive AI infrastructure demand into massive growth, the market is making it clear that growth alone isn’t enough.

⏰ Shareholder reminder: Four deadlines expire today. If you owned any of these stocks, today is the day to check whether you may be eligible: $BABA — Alibaba Group Holding $DVLT — Datavault AI $REPL — Replimune Group $SPRY — ARS Pharmaceuticals suewallst.com/lawsuits?wire=…

$VELO is down ~21% after an abrupt change in the finance office. 🔻 Velo3D disclosed that CFO James Suva separated from the company on September 28, less than six months after taking the role. The company specifically said his departure was not due to any disagreement over its operations, policies or practices. But the timing stands out. Back in August, Velo3D reported 52% YoY revenue growth, raised its 2026 revenue outlook to $65M-$75M, and reiterated its expectation for positive EBITDA in the second half. Suva himself said the company’s strengthened balance sheet gave it greater flexibility to execute its growth strategy. Seven weeks later, he’s gone. Stocks don’t drop for no reason.

$NXH is down ~16%. And this one has a lot going on. Neighborhood Intelligence announced a $45.5 million equity financing led by Highbridge Capital, selling roughly 16.5 million shares at $2.76 each. But there’s another piece to the deal: investors also received warrants covering another 16.1 million shares at $3.45. If fully exercised for cash, those warrants could bring in another $56.25 million. At the same time, NXH and Fathom Holdings mutually terminated their proposed merger, saying current valuations didn’t appropriately reflect the fair value of either company. One interesting wrinkle: CEO Marcus Lemonis is participating in the financing at the same $2.76 share price, but declined the accompanying warrants. Fresh capital. A potentially much larger share count. And a merger that’s no longer happening. Investors are sending the stock lower.