The public reaction to Elon Musk’s tweets is quite immediate and explosive. The financial market reacts aggressively even to his speculations and the topic of his tweets is trending almost immediately. While this is good news for brand/app promotions, it can also backfire due to the magnitude of the ‘Elon Effect’.

In a recent blunder, investors bought the wrong stock, thinking it represented the app Musk was promoting on Twitter. Of course, the mistake was corrected, but it’s interesting to note that this isn’t the first time this type of incident has happened. Here’s what happened.

Just as in the case of Signal, the messaging app that inadvertently drove up the cost of Signal Advance shares thanks to Musk’s “Use Signal” tweet, a similar faux pas happened with Clubhouse. Traders and investors assumed the CMGR ticker belonged to the Clubhouse app and jumped in like they did with medical device company Signal Advance.

Hoping to profit from Musk’s tweet, investors aggressively bought shares of Clubhouse Media Group, which has nothing to do with the app. CMGR shares soared to a high of $17.99 per share, marking a 116% increase in the stock price.