Ten stocks fell sharply on Tuesday, defying broader market optimism, amid a flurry of negative developments and the lack of catalysts that sparked sell-offs.

On Wall Street, the tech-heavy Nasdaq jumped by 0.44 percent, the S&P 500 increased by 0.41 percent, and the Dow Jones grew by 0.30 percent.

Indices aside, we name the 10 worst performers on Tuesday and detail the reasons behind their drop.

To come up with the list, we considered the stocks with more than 5 million shares in trading volume.

10. 3 E Network Technology Group Ltd. (NASDAQ:MASK)

Shares of 3 E Network dropped for a second day on Tuesday, shedding 14.03 percent to close at $0.57 apiece amid the lack of fresh catalysts to boost investing appetite.

Tuesday also marked the company’s 10th consecutive day of trading below the Nasdaq’s minimum bid price requirement of $1, potentially supporting investor pessimism.

3 E Network Technology Group Ltd. (NASDAQ:MASK) is a Hong Kong-based company providing business-to-business information technology solutions, and is slowly transitioning to Bitcoin treasury building.

In its recent move to expand Bitcoin ownership, 3 E Network Technology Group Ltd. (NASDAQ:MASK) successfully raised $7.4 million in fresh funds through the issuance of senior secured convertible notes and warrants to an institutional investor. The total amount represents the first of a three-tranche private offering.

The company said part of the proceeds will be used to acquire Bitcoins, in line with its plans to build cryptocurrency reserves and support its growth initiatives in the Web 3.0 era.

9. Inno Holdings Inc. (NASDAQ:INHD)

Inno Holdings fell by 16.63 percent on Tuesday to close at $3.96 apiece as investors resorted to profit-taking following what analysts called a “meme rally” in the previous day, bolstered by the Federal Reserve’s signal to cut interest rates.

At intra-day trading on Tuesday, Inno Holdings Inc. (NASDAQ:INHD) opened at $3.27, to a high of $4.03, before trimming gains toward the session. The closing price, however, remained at a whopping 202-percent gain prior to the meme rally.

According to analysts, investors loaded positions on expectations that it would benefit from the US central bank’s expected rate cuts.

Inno Holdings Inc. (NASDAQ:INHD), a holding company, operates a diversified business, including phone recycling, wholesaling, and construction products, among others.

In particular, its construction production business is expected to benefit from a projected boom in the residential market, thanks to lower borrowing costs that could prop up property buying.

8. Virax Biolabs Group Ltd. (NASDAQ:VRAX)

Virax Biolabs snapped a two-day winning streak on Tuesday, shedding 18.18 percent to close at $0.6333 apiece as investors unloaded portfolios amid the lack of catalysts to sustain the rally.

On Tuesday, Virax Biolabs Group Ltd. (NASDAQ:VRAX) announced a partnership with Emory University’s Center for the Advancement of Diagnostics for a Just Society to jointly conduct clinical studies on ViraxImmune.

The studies will focus on immune profiling in individuals with post-viral syndromes, beginning with COVID.

Under the agreement, the Emory Laboratory for Innovative Assay Development will conduct patient recruitment, testing, and analysis to generate clinical data that is intended to support Virax Biolabs Group Ltd.’s (NASDAQ: VRAX) planned regulatory submissions and potential future commercial rollout.

The deal aligns with Virax Biolabs Group Ltd.’s (NASDAQ:VRAX) preparations for a pre-submission meeting with the US Food and Drug Administration early next month.

The meeting will seek the FDA’s feedback on the proposed intended use and regulatory pathway for ViraxImmune in COVID. The outcome will provide formal input on the pivotal US clinical trial design and inform the company’s regulatory and commercialization strategy.

7. Raytech Holding Ltd. (NASDAQ:RAY)

Raytech Holding fell by 18.53 percent on Tuesday to finish at $2.55 apiece as investors resorted to early profit-taking after soaring to a new record high at intra-day trading.

During the morning session, Raytech Holding Ltd. (NASDAQ:RAY) soared to as high as $3.68, marking a 17-percent jump from its closing price of $3.13 on Monday, before erasing all gains toward the close.

The rally was short-lived as investors remained cautious amid claims from The Bear Cave, a stock commentator that claimed that Raytech Holding Ltd.’s (NASDAQ:RAY) shares were being manipulated by overseas stock manipulation groups.

It said that the company’s stock was at risk of a near-term, severe collapse.

“The Bear Cave believes that stock is likely controlled, at least in part, by coordinated stock manipulation groups that began dumping sizable amounts of stock,” said commentator Edwin Dorsey.

He noted a crowdsourced platform exposing stock manipulation WhatsApp groups, which claimed to have 14 submissions on Raytech stock promotion.

Another Reddit community exposing US-listed China stock manipulation scams was also said to have issued recent warnings about the company.

Raytech Holding Ltd. (NASDAQ:RAY) has not commented on The Bear Cave’s claims.

6. Bollinger Innovations, Inc. (NASDAQ:BINI)

Shares of Bollinger Innovations dropped for a second day on Tuesday, slashing 19.74 percent to finish at $0.3030 apiece as investors continued to dump shares amid the lack of catalysts to boost investing appetite.

Tuesday’s closing price marked its 10th consecutive day of falling below the minimum bid price requirement of $1 after a new series of reverse stock splits earlier this month.

This year alone, Bollinger Innovations, Inc. (NASDAQ:BINI) implemented five rounds of reverse stock splits, the latest being 1-for-250, in a bid to comply with the Nasdaq’s bid price requirement. The transaction potentially impacted the liquidity of its stock.

Bollinger Innovations, Inc. (NASDAQ:BINI) is a Southern California-based automotive company building the next generation of commercial electric vehicles.

In the third quarter of fiscal year 2025, the company widened its net loss attributable to shareholders by 49 percent to $129.7 million from $87.36 million in the same period last year.

5. Marker Therapeutics, Inc. (NASDAQ:MRKR)

Marker Therapeutics dropped for a second day on Tuesday, slashing 20.63 percent to close at $1 as investors sold off amid the lack of fresh catalysts to sustain buying appetite.

On Monday, Marker Therapeutics, Inc. (NASDAQ:MRKR) earned a boost from promising results from the first phase study of its experimental treatment for lymphoma patients.

Called the Apollo study, Marker Therapeutics, Inc. (NASDAQ:MRKR) said that its multi-antigen recognizing T cell therapy registered an objective response rate of 66 percent in patients with Non-Hodgkin Lymphoma (NHL), with 50 percent achieving complete responses.

A total of 24 patients were enrolled in the clinical study, with 15 patients having NHL, while the other 9 had HL.

“We are very excited and encouraged by the progress of the study,” said Marker Therapeutics, Inc. (NASDAQ:MRKR) President and CEO Juan Vera.

“We believe that MT-601 could address this critical unmet need and offer new hope to patients who have exhausted multiple lines of treatment, including CAR-T cell therapy,” he noted.

4. Tharimmune, Inc. (NASDAQ:THAR)

Tharimmune tumbled by 20.75 percent on Tuesday to close at $6.11 apiece as investor sentiment was dampened by a share sale transaction on the same day that saw the company raise as much as $5.35 million in fresh funds.

In a regulatory filing, Tharimmune, Inc. (NASDAQ:THAR) said it entered into a share purchase agreement with certain buyers involving the sale of more than 1.18 million common shares at a price of $4.50 apiece.

The share sale forms part of a shelf registration statement approved by the Securities and Exchange Commission and became effective on March 24, 2023.

The offering is expected to close tomorrow, Wednesday, subject to customary closing conditions.

Additionally, Tuesday’s drop can be attributed to a profit-taking transaction following Monday’s 63-percent surge.

Tharimmune, Inc. (NASDAQ:THAR) is a clinical-stage biotechnology company developing a portfolio of therapeutic candidates for inflammation and immunology.

3. Femasys Inc. (NASDAQ:FEMY)

Femasys extended losses to a second day on Tuesday, slashing 27 percent to close at $0.3760 apiece as investor sentiment was dampened by its planned $8 million follow-on offering.

Under the registration statement, Femasys Inc. (NASDAQ:FEMY) is set to issue more than 10.4 million common shares and pre-funded warrants to purchase up to 11.75 million common shares.

Each common share or pre-funded warrant comes with an accompanying common warrant, with a total of 22 million warrants being sold.

The combined public offering for each share of common stock and accompanying common warrant is $0.36, except for 87,363 shares and accompanying warrants sold to certain officers of the company at a price of $0.5151 per share and accompanying warrant.

According to Femasys Inc. (NASDAQ:FEMY), proceeds from the offering will be used to fund its expansion plans, development of its products and product candidates, as well as general corporate purposes and capital expenditures.

2. J-Star Holding Co., Ltd. (NASDAQ:YMAT)

J-Star Holding fell by 64.63 percent on Tuesday to finish at $2.03 apiece amid the lack of clear catalysts to spark selling.

J-Star Holding Co., Ltd. (NASDAQ:YMAT) is a Taiwan-based innovative carbon fiber and composite solutions provider for a wide range of applications including personal sports equipment, healthcare products, automobile parts, resin systems, and research and development services, and only debuted on the US stock market last month.

During its initial public offering, J-Star Holding Co., Ltd. (NASDAQ:YMAT) successfully raised $5.75 million from the sale of shares at a price of $4. The total amount included the sale of an additional 187,500 shares, representing an overallotment option.

Since its market debut, the company’s stock has grown by as much as 58 percent. However, its closing price on Tuesday marked a decline of 50.24 percent from its initial price of $4.08 on its first day as a publicly listed company.

1. ESSA Pharma Inc. (NASDAQ:EPIX)

ESSA Pharma nosedived by 66.39 percent on Tuesday to end at $0.2631 apiece as investors sold off positions following the payment of $80 million to its shareholders as part of its business shutdown.

In a statement, ESSA Pharma Inc. (NASDAQ:EPIX) said it returned around $1.69 per share to shareholders as of August 22 record. It also corrected the ex-dividend date to August 22, instead of August 25 as it had earlier announced.

The transaction was in line with ESSA Pharma Inc.’s (NASDAQ:EPIX) planned merger with XenoTherapeutics, Inc., under which the latter will acquire all of its issued and outstanding shares.

Under the terms of the agreement, shareholders of ESSA Pharma Inc. (NASDAQ:EPIX) will receive a cash payment that will be determined based on its cash balance at closing after deducting certain transaction costs, a reserve for liabilities and legal expenses, and a transaction fee.

Additionally, each shareholder will receive one non-transferable contingent value right for each share, which will entitle the shareholder to receive a pro rata portion of up to $2.95 million or $0.06 per CVR within 18 months following the transaction.

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