The space sector is getting hammered this week. Nearly every name on the board is red - some sharply so - as a combination of SpaceX pre-IPO fatigue and the implosion of a high-profile short squeeze drags the group lower across the board.

SPCE Short Squeeze

Virgin Galactic Holdings, Inc. (SPCE  ) cratered 30.58% this week to $4.29 after one of the more dramatic squeezes in recent memory flamed out.

On Monday, SPCE touched $8.90 intraday on speculation and derivative settlement dynamics - short interest stood at 23.2% of float heading in, and S3 Partners estimated short sellers were sitting on $64 million in losses at the peak.

The arrival of strategic investor Rich Huang of RichRich Capital, who disclosed a 5.26% stake, added fuel to the fire.

But SPCE closed Monday at $7.52, and the squeeze has since unwound sharply - Wednesday's close of $4.29 puts the stock well below where it started the week from the prior Friday's $6.18 close. The squeeze is over.

Around the Sector

Redwire Corp. (RDW  ) is the week's second-biggest loser at down 24.22% to $18.62, with Wednesday volume hitting 41.6 million shares - well above its typical daily average.

Momentus Inc. (MNTS  ) has dropped 22.14% to $13.12.

Voyager Technologies (VOYG  ) is off 9.23% to $44.96, and AST SpaceMobile (ASTS  ) is the relative outperformer of a bad group, down 5.01% to $107.73.

Rocket Lab Corp. (RKLB  ) is down 20.06% week-to-date to $114.70, making it one of the worst large-cap performers in the cohort.

Intuitive Machines (LUNR  ) has dropped 22.82% to $33.83 despite locking in two new NASA lunar reconnaissance contracts in May, suggesting the macro overhang is heavier than individual contract wins right now.

Planet Labs Plc (PL  ) is off 15.66% to $43.13, and Firefly Aerospace (FLY  ) has shed 14.43% to $39.78.

The broader backdrop matters and reports swirling this week of SpaceX trimming its IPO valuation ambitions away from the $2 trillion target have taken some of the air out of the entire group.

When SpaceX sentiment shifts, the public pure-plays tend to feel it first.

In fact, SpaceX filed official IPO terms on Wednesday, targeting $135 per share - a fixed price, not a range, which is unusual and very Elon Musk.

At that price, the company plans to sell 555.6 million shares, raising approximately $74.4 billion (or up to $85.7 billion if underwriters exercise their full option), implying a $1.75 trillion valuation.

That's down from the $2 trillion target Bloomberg reported in April, and slightly down from the $1.8 trillion figure circulating last week.

The roadshow officially kicks off Thursday, with pricing expected after market close on June 11 and the first trading day set for June 12 on Nasdaq under ticker SPCX.

The Payload

The week isn't over, but the damage is already significant. The space sector entered 2026 as one of the market's hottest trades - this week, it's one of the most punishing.