Pre-market price fluctuations

Hey there,
Can any more experienced traders enlighten me on this matter, I appreciate it is not an exact science but…
A stock (Coty) I have a strong position in went up over 10% yesterday. In after hours it continued to rise, breaking a price point ($5). This morning between 9-10am it dropped all the way back to $4.50, where it really started it’s rise yesterday. It is now back up to almost $5.

Is it likely that the early hours sell off was bears getting out due to an expectation of further gains?
Is it people realising that this has reached overvalued hype status and hit the ceiling?
What do you think the large sell off represents?

I have seen a couple of other stocks with a similar pattern today such as Macy’s, though this stock has bounced significantly higher than Coty and hasn’t had the same news (new CEO, KKW partnership) that might suggest a bounce.

Any learning points/reading suggestions would be really appreciated.