The Fundrise Innovation Fund LLC (VCX) experienced a sharp decline of 7.89% during intraday trading on Thursday. The closed-end fund, which has holdings in companies like SpaceX and Anthropic, has been subject to extreme price swings and trading halts since its recent debut.

The significant drop appears to be driven by Citron Research's disclosure of a short position in the company. This bearish stance from the prominent short-selling research firm comes as the fund has soared approximately 1,900% above its net asset value since listing, creating what many analysts consider an unsustainable valuation.

Trading in VCX was halted multiple times during the session due to volatility, echoing patterns seen during the meme stock era. The combination of extreme recent gains, heightened volatility, and a prominent short position disclosure has created significant downward pressure on the stock price during regular trading hours.