Shares of PDD Holdings, the owner of Chinese e-commerce platform Temu, dropped by 33% on the U.S. market this week following weak financial results and negative forecasts from the company. As a result, the stock also lost 30% of its value in the third quarter, leading to significant losses for investors.

Major hedge funds, such as Appaloosa Management and HHLR Advisors, held substantial stakes in PDD. According to WhaleWisdom data, the decline in shares from the end of June to the end of August could have resulted in losses of around $4 billion.

PDD was a popular choice among investors focused on the Chinese market due to its steady growth and global expansion. However, the sharp decline in stock price and uncertain outlook for the company have raised concerns among investors.

With no plans for dividends or share buybacks, many funds have started to reassess their investments in PDD, highlighting the instability of the current situation in the Chinese stock market.