Pop Mart International Group Ltd. shares have plunged over 30% in five sessions, extending a nearly 60% decline from its August peak. The selloff has wiped out about $33 billion in market value as investors grow skeptical of the company's dependence on Labubu dolls for growth. The toymaker's recent earnings results highlighted this rising reliance on the popular snaggle-toothed monster figures.

Labubu dolls have been Pop Mart's breakout product, driving explosive growth and a cult following among collectors. However, the latest market reaction suggests investors are questioning whether this single product line can sustain the company's valuation. The stock's dramatic fall from its record high reflects mounting concerns about the limits of Labubu-led expansion.

The market cap destruction represents one of the largest losses in the collectibles sector, signaling a potential shift in sentiment toward fad-driven companies. Pop Mart's struggles highlight the risks of building a business around a single hit product, even one as popular as Labubu dolls.