--- title: "Why Are Shares Of IO Biotech Plummeting?" type: "News" locale: "en" url: "https://longbridge.com/en/news/281211551.md" description: "Shares of IO Biotech, Inc. (NASDAQ: IOBT) are plummeting after the company filed for Chapter 7 bankruptcy and will cease operations in Delaware. The stock fell about 73% to roughly $0.046, reflecting a significant sell-off treated as an insolvency event. IOBT is trading far below key averages, down 96.09% over the past year, with no clear support levels defined. Despite some bullish momentum indicators, the overall trend remains deeply bearish, with key resistance at 50 cents." datetime: "2026-03-31T15:09:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281211551.md) - [en](https://longbridge.com/en/news/281211551.md) - [zh-HK](https://longbridge.com/zh-HK/news/281211551.md) --- # Why Are Shares Of IO Biotech Plummeting? Shares of **IO Biotech, Inc.** (NASDAQ:IOBT) are plummeting Tuesday after the company announced it filed for Chapter 7 bankruptcy and will cease operations in Delaware. - IO Biotech shares are approaching critical lows. What’s pressuring IOBT? ## Shares Hit New Low As IO Biotech Declares Bankruptcy IO Biotech's sell-off is being treated as an insolvency event, not a routine small-cap biotech de-risking, after the company filed for Chapter 7 bankruptcy and said it will cease operations in Delaware. The stock fell about 73% to roughly $0.046 alongside that disclosure. The price action is consistent with a stock that has been in a prolonged downtrend and is now breaking to fresh lows, which can trigger forced selling and liquidity-driven air pockets. With small-cap risk appetite improving elsewhere (Russell 2000 up 2.05% and market breadth positive with 9 sectors advancing), the disconnect points to stock-specific positioning and technical damage rather than a sector-wide move. From a chart perspective, IOBT is also trading far below its key trend gauges, so even modest selling pressure can have an outsized impact when there's no nearby technical "floor" traders trust. That dynamic often shows up when a name is pressing new lows and prior support levels have already failed. ## Shares Trade Far Below Key Averages IOBT is trading 81.5% below its 20-day simple moving average (23 cents) and 91.6% below its 100-day SMA (51 cents), keeping both the short- and intermediate-term trends firmly bearish. Shares are down 96.09% over the past 12 months and are positioned much closer to their 52-week lows than highs. RSI in the 30–50 range with bullish MACD indicates momentum leaning bullish, but it's fighting a deeply bearish trend backdrop. Key resistance currently sits at 50 cents with no clear support defined given the sharp sell-off. ## Shares Hit New Low **IOBT Stock Price Activity:** IO Biotech shares were down 75.41% at $0.045 at the time of publication on Tuesday, according to Benzinga Pro data. _Image: Shutterstock_ ### Related Stocks - [LABD.US](https://longbridge.com/en/quote/LABD.US.md) - [IBBQ.US](https://longbridge.com/en/quote/IBBQ.US.md) - [XBI.US](https://longbridge.com/en/quote/XBI.US.md) - [IOBT.US](https://longbridge.com/en/quote/IOBT.US.md) - [IBB.US](https://longbridge.com/en/quote/IBB.US.md) - [PBE.US](https://longbridge.com/en/quote/PBE.US.md) - [FBT.US](https://longbridge.com/en/quote/FBT.US.md) - [SBIO.US](https://longbridge.com/en/quote/SBIO.US.md) - [BBH.US](https://longbridge.com/en/quote/BBH.US.md) - [BIB.US](https://longbridge.com/en/quote/BIB.US.md) - [IOBTQ.US](https://longbridge.com/en/quote/IOBTQ.US.md) ## Related News & Research - [Pfizer Says Vyndamax Drug Patent Settlement Reshapes Post-2028 Revenue View](https://longbridge.com/en/news/285238982.md) - [Novavax (NVAX) Q1 Earnings Report Preview: What To Look For](https://longbridge.com/en/news/285148434.md) - [BUZZ-Ocugen plunges after $115 million convertible bonds offering, bigger loss](https://longbridge.com/en/news/285252501.md) - [Viridian eye disease drug benefits chronic patients in late-stage trial](https://longbridge.com/en/news/285192042.md) - [Ocugen Advances Late-Stage Gene Therapies, Bolsters Cash Runway](https://longbridge.com/en/news/285244765.md)