Oversupply issues have negatively impacted the cannabis market in Canada, with Canopy Growth (NASDAQ:CGC) losing billions due to oversupply and overspending. The same issue is occurring in the U.S., with large Multi-State Operators (MSOs) installing excess capacity in new state markets, leading to oversupply, declining margins, and tough decisions. Some larger firms have exited saturated state markets, while others have not staffed up their operations and let some sites remain idle.