Reddit's stock has experienced significant volatility following its IPO. New Street Research initiated coverage with a neutral rating and $54 price target. However, Hedgeye Risk Management's short idea caused the stock to fall nearly 10%. Subsequently, Reddit shares plummeted by 11% as more short positions were taken, with Hedgeye suggesting a 50% downside. Despite some traders monitoring options, the stock continued to face selling pressure, leading to its largest one-day drop since trading debut.