Shares of video game retailer GameStop (GME -2.96%) have rocketed in the last two weeks as some investors have been forced to cover shares held short. After jumping more than 400% since the start of 2021, the shares that currently trade at about $99 per share soared to over $150 earlier today, before trading was halted due to volatility.
This is what an epic short squeeze looks like:
The exponential rise in shares began earlier this month after it was announced that activist investor and Chewy (CHWY -11.84%) co-founder Ryan Cohen was being added to GameStop's board of directors.
But things went viral after the subject started trending in online chat rooms. Users began posting, seemingly trying to push the short squeeze and drive shares higher, CNBC reported.
Short-seller Citron Research said on Friday that it was canceling an online presentation where it planned to detail the reasons for its short position on GameStop. According to the CNBC report, Citron said it was going to stop discussing the company because of the "angry mob" of share owners trying to drive the move higher.
Owners of the stock should realize that what's going on now is not connected to company fundamentals, but rather a mechanical trading breakdown that will eventually be resolved.