Wolfspeed Stock Plummets Amid Meme Stock Volatility and Restructuring Uncertainty

Wolfspeed shares tumbled 10.4% in Friday trading, defying broader market gains, as meme stock traders took profits following a 68% monthly surge. The silicon-carbide specialist's volatility stems from its impending Chapter 11 exit, which will erase 70% of debt but dilute existing shareholders to 3-5% equity in the restructured entity.

Market observers note the stock's recent rally mirrored speculative trading patterns seen in crypto assets like DOGE and SHIB, where retail momentum often precedes sharp corrections. Unlike decentralized cryptocurrencies however, Wolfspeed's fate remains tied to traditional corporate restructuring risks.

The coming weeks will test whether Wolfspeed's underlying technology can outshine its current reputation as a meme-stock play. For crypto investors, the event serves as a reminder that volatility cuts both ways - whether in legacy markets or on blockchain-native exchanges like Binance and Coinbase.