What happened

Shares of GameStop (GME -0.68%) extended their torrid recent gains on Tuesday. By the close of trading, the video game company's stock price was up a stunning 92.6%.

So what

GameStop's shares are now up more than 1,000% since the beginning of the year. Analysts say the stock's staggering ascent is due largely to a short squeeze, driven by a slew of individual investors who are coordinating their buying efforts on sites such as Reddit and Twitter (TWTR)

An upwardly sloping digital stock chart.

GameStop's stock price is up more than tenfold in 2021. Image source: Getty Images.

GameStop's gains appear to have accelerated after noted venture capitalist Chamath Palihapitiya announced on Twitter that he bought call options on its stock.  Palihapitiya is essentially betting that GameStop's stock price will continue to rise.

Now what 

As of 6:20 p.m. EST, GameStop's shares are up an additional 40% in after-hours trading. The sharp upward move followed a tweet by Tesla CEO Musk that linked to a popular Reddit message board, which many GameStop bulls have used to promote the stock. 

These massive moves in the struggling video game company's stock price have no doubt been exhilarating for the bulls. Yet before rushing to buy, investors should be aware that GameStop's share price could plunge as quickly as it's risen.