According to Bloomberg, the price of Trump Media stocks plummeted from a high of nearly $5.8 billion to about $2 billion, causing Trump's paper profits to drop by more than $3.7 billion. Short-selling investors made more than $200 million in profits.

The stock, which went public through a blank-check merger, is currently trading below pre-merger levels. Brian Quinn, a law professor at Boston College, said the current share price has nothing to do with the company’s actual value.

Despite the drop in its share price, Wall Street still sees Trump Media as overvalued. It lost more than $16 million in the second quarter on less than $1 million in revenue.

Trump's return to the X platform has dampened some investors' bullish expectations. Stocks are more volatile than Bitcoin, with a 30-day realized volatility of about 70.

Trump and other insiders can start selling shares this month, potentially further exacerbating the drop, but restrictions and regulatory requirements make it difficult for Trump to cash out quickly.