$Decoy Therapeutics(DCOY.US) surged +74%, as the company announced a PIPE financing of up to $21 million, with a $3.5 million initial payment and the remainder tied to Phase 1 / 2a clinical milestones, unlocking in batches. It was pulled up to $18 in pre-market, then smashed back to around $11 during the session—with a float of 3.4 million shares, it's easy to switch between financing dilution and clinical warrants.

The catalyst merely ignited the "early short" story. The nasal spray pan-coronavirus inhibitor is still more than half a year away from Phase 1, and the probability of milestone warrants receiving all the funds is not high. The short-term price seems more driven by sentiment + retail investors, and the post-market dialogue with the European drug regulator will be the key to repricing.