Avis Stock Plunges 70%

The collapse was triggered by investor fears of a potential equity offering that would dilute existing shares and ease the pressure on short sellers.

The volatility has significantly impacted the Dow Jones Transportation Average, which Avis had helped lift in recent weeks.

Analysts noted that the 'crowded short trade' finally ran out of fuel as reality set in for the car rental company.

The sharp decline has left many retail investors facing substantial losses.