SunEdison Inc.’s stock plunged in heavy volume Friday, reversing the previous session’s surge, after investors were reminded that the renewable energy company could go bankrupt at any moment.

The company disclosed in a filing Friday that it had entered into “confidentiality agreements” last month with potential lenders as they discussed terms of the debtor-in-possession financing that would be needed if it were to file for bankruptcy.

The company said in its presentation to principals for the second-lien lenders that there was a “serious degradation in liquidity position and near-term liquidity challenge.”

The shares US:SUNE tumbled 37% to 37 cents. Volume soared to 132.6 million shares, more than double the full-day average, and enough to make the stock the day’s most active of those listed on U.S. exchanges, according to FactSet.

That followed a 58% jump on Thursday, after the company said an internal accounting probe found no material misstatements or evidence to support a finding of fraud.

At Thursday’s closing price of 59 cents, the stock had nearly tripled since April 4, when the stock closed at a record low of 21 cents after The Wall Street Journal reported the company was planning to file for bankruptcy in the coming weeks.

FactSet

The recent rally could have been the result of the closing out of massive amounts of bearish bets on the stock. Short interest--bets that prices will fall--jumped to a record 126.4 million shares as of the end of March, or about 40% of the shares outstanding, according to FactSet.

SunEdison shares closed below $1 for the first time on March 29, after one of its spinoffs--TerraForm Global Inc. US:GLBL --warned there was a “substantial risk” that SunEdison would go bankrupt. The stock has now lost 99% of its value in the past year, compared with a 1.2% decline in the S&P 500.

Shares of companies going bankrupt often gravitate toward zero as equity holders are last in line for compensation.