Shares of Regencell Bioscience Limited (RGC) experienced a sharp 24-hour plunge of 18.69% in overnight trading, continuing its downward trajectory following an 18% drop in the previous session. This significant decline comes as investors reassess the company's valuation in light of a recent stock split announcement and an extraordinary year-to-date rally.

The biotech company, which has yet to report any revenue, had seen its stock price skyrocket by an astounding 59,900% since the beginning of the year. However, the recent stock split announcement seems to have triggered a reality check among investors, leading to the current sell-off.

Market analysts suggest that the dramatic reversal in Regencell's stock price reflects growing concerns about the sustainability of its valuation, particularly given the lack of reported revenue. The company's ability to maintain its market capitalization in the face of these fundamentals is now being questioned, resulting in the ongoing price correction.