IREN Ltd (NASDAQ:IREN) experienced a significant 24-hour plunge of 5.39% on Thursday, as the crypto-linked stock faced multiple headwinds. The sharp decline was primarily driven by a broader cryptocurrency market downturn and fresh criticism from a prominent short-seller.

The cryptocurrency market's weakness, particularly Bitcoin's 2.36% drop to around $108,500, played a crucial role in IREN's stock decline. This represents a substantial pullback from Bitcoin's recent record high of over $126,000. The crypto market's downturn has been attributed to escalating U.S.-China trade tensions, with both nations implementing new port fees on shipping companies. Additionally, the crypto space has experienced historic liquidations following the announcement of 100% tariffs on Chinese goods.

Adding to IREN's woes, renowned short-seller Jim Chanos publicly challenged the company's bullish outlook on Tuesday. Chanos criticized a recent Cantor Fitzgerald research report, questioning its projections of 80% EBITDA margins for IREN's AI data center operations. He also raised concerns about the depreciation assumptions for IREN's planned $2.9 billion equipment purchases, suggesting an unrealistic nine-year lifespan for rapidly obsolescing GPU hardware. This criticism has likely contributed to investor uncertainty and the subsequent sell-off in IREN's stock.