Oklo Inc. (OKLO) shares witnessed a significant plummet of 6.88% in the pre-market trading session on Wednesday, following news that renowned short-seller Kerrisdale Capital has taken a bearish stance on the stock.

In a brief statement, Kerrisdale Capital, known for identifying companies with potential accounting irregularities or operational challenges, announced, "We're short Oklo." The firm did not provide further details on its rationale for shorting Oklo, a company focused on developing advanced nuclear reactors.

Short-selling, a strategy employed by investors who believe a stock's price will decline, involves borrowing shares and selling them with the intention of buying them back at a lower price to pocket the difference. This practice can exert downward pressure on a stock's price, particularly when undertaken by influential firms like Kerrisdale Capital, which have a track record of successfully identifying overvalued or troubled companies.