Avis Budget (CAR) stock plummeted 6.51% intraday on Thursday, amid heightened volatility that triggered multiple trading halts.

The decline was primarily driven by the unwinding of a prior massive short squeeze, combined with a fresh analyst downgrade from Buy to Hold. The stock had surged over 200% in two weeks due to a short squeeze, but short interest has since climbed to 58% of the free float, intensifying market tension.

Fundamental concerns also weighed on sentiment, including the company's net losses, negative shareholders' equity, heavy debt burden, and a $518 million impairment charge on its electric vehicle fleet. Profit-taking pressure following the extreme rally further contributed to the sell-off.