Trilogy Metals Inc. (TMQ) experienced a significant 24-hour plunge of 8.49% on Tuesday, as a sharp after-hours selloff erased much of the gains seen during regular trading. This volatile movement came in the wake of recent extraordinary gains fueled by a U.S. Department of Defense investment.

During Tuesday's regular trading session, Trilogy Metals saw its shares skyrocket by 61.59%, closing at $10.60 and even touching a new 52-week high of $11.29. The surge was a continuation of the rally that began after the October 6 announcement of a $35.6 million investment from the U.S. Department of Defense for an estimated 10% ownership stake in the company. However, the euphoria waned in after-hours trading, with the stock experiencing a sharp 14.34% decline.

Market analysts suggest the reversal could be attributed to profit-taking by investors following the massive intraday gains, or a market correction after such a significant and rapid price increase. Despite the after-hours drop, Trilogy Metals' stock price remains substantially higher than before the Defense Department's investment announcement, which has driven a 401.9% increase since the news broke. Investors will be closely watching Trilogy Metals in the coming days to see if this drop represents a temporary pullback or the beginning of a more significant correction.