Beyond Meat, Inc. (BYND) stock skyrocketed 93.59% in intraday trading on Monday, following a significant debt restructuring announcement and what appears to be a short squeeze. This dramatic surge comes after the stock had already gained over 24% in the previous session, indicating a remarkable turnaround for the plant-based meat company that had been facing financial challenges.

The primary catalyst for this surge was Beyond Meat's announcement of a completed exchange of nearly $1.15 billion in zero-coupon convertible notes due 2027 for a new mix of assets. This debt swap includes about $202.5 million in new 7% convertible notes due 2030 and approximately 326 million new shares of common stock. The restructuring effectively canceled 97% of the company's former outstanding notes, eliminating the near-term risk of bankruptcy that had been looming over the company.

However, this financial maneuver comes at a significant cost to existing shareholders. The debt restructuring has resulted in massive dilution, with note holders now controlling about 81% of all outstanding shares. This percentage could potentially increase to nearly 88% if the new convertible notes are fully converted into equity. Despite the dilution, investors appear to be relieved that Beyond Meat has averted the immediate threat of insolvency, buying the company more time to turn its business around. The stock's dramatic rise may also be partly attributed to a short squeeze, as traders who had bet against the company rush to cover their positions in light of the positive news.