Once again, GME (GME) is taking investors on a wild ride.
The stock opened at $ 269 on Wednesday morning before gradually rising to $ 347 just after noon – in GameStop terms – reaching this peak, dropping 43% to $ 198 in just over 30 minutes, before reaching an hour later climbed again to $ 257.
Amid all the action, the stock was halted seven times between 12:22 and 1:12p
Although it was not the 18th half of January 28th, it was still a huge increase in the volatility of GameStop.
Keith Gill, the original GameStop investor from r / WallStreetBets, followed the day’s ride in a series of gifs and videos from his Twitter account.
Although Gill is the most well-known investor of GameStop, the positive price movement that started on Monday probably comes from Ryan Cohen, the founder of whom invested 10% in GameStop last September and joined before the first wild ride of the stock in January. On Wednesday, the news became known that Cohen would take a role at the company and take over the reins of the e-commerce part of the business.
After Cohen’s preliminary investment as well as personal history with the founding and management of an extremely successful e-brand, Chewy, investors jumped back into the “meme” stock.
Interestingly, the recent surge in GameStop shares did not coincide with an increase in short-term interest, as happened during the last episode at the end of January, according to data from S3 Partners. The current run is very different, and lacks any form of short-term pressure, whether in the numbers or in the public narrative that has previously seen short-selling hedge funds shrink against retail investors seeking revenge. (This narrative was false; hedge funds were on both sides of this trade.)
In an interview with Bloomberg on Monday, Ihor Dusaniwsky, managing director of analytics firm S3 Partners, said short sellers had lost $ 20 billion on GameStop so far this year – $ 609 million on Monday alone.
That could be one reason why short-term interest rates fell further on Wednesday, along with higher GameStop prices. As the chart above shows, this is the lowest short interest rate in a long time.
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Ethan Wolff-Mann is a Yahoo Finance author focusing on consumer issues, personal finance, retail, airlines, and more. Follow him on Twitter @ewolffmann.