The news — A repeat of the July 24 disclosure about the SEC subpoena and the Hagens Berman investigation — was simply republished, not updated with new facts.

Investor reaction — Many retail investors (and some algorithmic traders) respond to headline cues without verifying the publication date or novelty of the information.

Effect — Selling pressure snowballs because short-term traders see red on the chart and join the move, often creating a larger drop than is rational from a valuation standpoint.

Core business — No new data suggests a change to Telix’s earnings outlook, pipeline progress, or valuation metrics. Analyst price targets remain well above the current share price.

It’s the same behavioral quirk that fuels “dead cat bounces” and “overreaction gaps” — when traders overreact to a headline, it can create both downside overshoots and subsequent buying opportunities.