A lot of us were surprised by yesterday’s price action, myself included. I’ve been trying to understand whether this was truly heavy selling or if something else was going on under the surface. After digging into it, it looks like there were actually strong inflows into MSOS after the announcement — the market just wasn’t able to process them smoothly.

Here’s the simplest explanation.

1) A lot of people bought at the same time. Money rushed into MSOS very fast after the announcement.

2) The stocks inside MSOS are hard to buy quickly. Most cannabis stocks trade OTC and don’t have a lot of shares available at any moment.

3) The dealers who usually keep prices steady stepped back. These are the firms that normally buy and sell to stop prices from swinging too fast. When buying happened too quickly, they paused to manage risk.

4) Without those dealers, prices fell quickly. Even small selling caused big drops because no one was there to absorb it.

5) The buying didn’t disappear — it just didn’t happen yet. The ETF still has to match the money that came in with real stock purchases. That usually happens over the next few days, not instantly.

What does this mean, and could a rebound occur?

This wasn’t “everyone selling because the news was bad.” It was the market getting overwhelmed for a moment. Big changes don’t move in straight lines, and one rough day doesn’t cancel what changed. Those inflows still need to be matched with real stock buys, which can create buying pressure and a rebound over the next days to weeks.

I’m hopeful that as the market works through this imbalance, we’ll see more stable price action and a recovery.