After I was left for dead less than a year ago, GameStop (NYSE: GME) climbed back up 50% on the day to a new high of $ 65.01, after trading at around $ 2.50 a share early last year. At one point Friday, the shares rose as much as 78% before disappearing Wall Street breakers that temporarily halted trading.
The recent run-up has all the hallmarks of a short press, which accelerated this week when a rift arose between well-known short seller Citron Research and a group of investors visiting the subreddit of r / WallStreetBets. Forum members stayed and even encouraged other retailers to buy GameStop.
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Lemon editor Andrew Left threw in the towel on Friday and was sent out of a temporary post Twitter account, “We will no longer comment on GameStop, not because we do not believe our investment thesis, but rather the angry crowd that owns this stock.” He claims a number of crimes have been committed and says his family has been ‘terrorized’. He had earlier claimed that Citron’s original Twitter account had been hacked.
Left promised a live event earlier this week in which he would reveal five reasons why GameStop would cost $ 20, saying those buying the stock are ‘struggling’. After the event was postponed Wednesday, it was abruptly canceled on Thursday and replaced with a video posted on Twitter and Alphabetsee YouTube. The video has been widely denounced, with a number of Twitter users citing factual errors and repetitive reasoning.
While trading volume was already high yesterday, it shot through the roof today, a clear sign that the short press is getting pressure. While 55 million shares traded in GameStop yesterday, it rose to almost 196 million today, 17 times the average volume during December.