Tilray, the pot stock captivating Wall Street, drops more than 20% as wild ride continues

The wild ride continued on Thursday for shares of Canadian pot company Tilray.

The stock captivating trading desks across the country rose as much as 14 percent at one point, only to give up that gain and go negative about an hour into trading.

It closed down 17.6 percent. The stock swung in a wide range in the overnight session, down by 19 percent at one point and up by more than 11 percent.

Tilray shares overnight

Source: FactSet

Tilray shares were on fire the previous two days, but with plenty of bumps along the way. In that time period, the stock has shot up 56 percent. The stock was driven 38.1 percent higher on Wednesday after CEO Brendan Kennedy told CNBC's Jim Cramer that global pharmaceuticals must think about partnering cannabis producers as a "hedge" against the space. On Tuesday, the stock surged 28.9 percent after Tilray announced the Drug Enforcement Administration approved it to import marijuana to the U.S. for medical research.

But trading in the stock was halted five times on Wednesday as it failed to hold a more than 90 percent gain. Tilray shares even turned lower at one point before closing up 38.1 percent.

These wild price swings could also be a byproduct of the small number shares of the stock that are available for trading as well as the large number of those shares sold short. Tilray currently has 21.7 million floating shares and 19.5 percent of those are being used to bet against the company, according to FactSet data.

Still, the stock has had a meteoric rise since going public in July. Tilray — which priced its initial public offering at $17 per share — is up more than 1,100 percent since its IPO and nearly 500 percent over the past month.