AI Stock Crashes Amid Fierce LLM Competition
On July 20, just before the Hong Kong stock market opened, shares of ZHIPU AI experienced a sharp decline. Market monitoring data indicated that its price plummeted within approximately one hour, hitting a low of $120.7, representing an intraday drop of over 17%. The downward trend persisted during the trading session.
Multiple Headwinds Weigh on Market Sentiment
This sudden drop was not an isolated incident. Just a week earlier, on July 13, the company completed a placement of nearly 20 million new H shares. A more immediate market shock came from a competitor's move. On July 17, Moonshot AI released its open-source model KimiK3 with a staggering 2.8 trillion parameters. This news heightened investor concerns about shifting dynamics in the domestic large language model landscape, causing ZHIPU's stock to plunge 28.49% that day. Although no new company-specific negative news emerged by the time of reporting, the accumulated competitive pressures were sufficient to unsettle market confidence.
Top Bull "Whale" in Deep Water, Facing 300% Loss Yet Holding Firm
The consecutive stock price plunges have severely impacted the largest bullish position in the market. An address beginning with "0xddb" has been identified as the primary holder of this long position.
A Risky Position and Stubborn Conviction
Currently, this investor holds a long position of 7,300 contracts using 10x leverage, with a total value of approximately $905,000. The average entry price is as high as $174.2, while the liquidation price is around $78.3. This means that with the stock price falling below $130, the paper loss has reached about $367,000.
More staggering is the return rate: a negative 288.2%. This figure indicates that the loss amount is 2.88 times the initial capital of $127,000 used to open the position. Reviewing the transaction history shows that this investor first established the long position around $198.45 on July 6 and has not sold any contracts since. Even as the price continued to fall on the morning of July 20, the same address purchased an additional 409.1 contracts at $129.6, attempting to lower the average cost by buying the dip.
This "buying as it falls" strategy carries significant risk in highly volatile markets. If the price declines further towards the liquidation level, it could trigger a cascade of forced selling, permanently cementing the losses.