Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ GameStop jumped nearly 70%, as trading stopped briefly amid an epic short contraction

GameStop jumped nearly 70%, as trading stopped briefly amid an epic short contraction

GameStop’s most hated shares on Wall Street rose again on Friday as the huge short press continued to fuel its explosive rally.

Video game stocks jumped 69.4 percent to a high of $ 72.88 on Friday, bringing profits to more than 100 percent this week alone. Stock trading was suspended several times due to high volatility. The shares were last traded at around 35% to around $ 58.

GameStop has more than 138% of its floating stock sold in short, the shortest name on the U.S. stock market, according to FactSet, citing recent quotes.

Shares initially jumped higher last week after the company announced that co-founder and former CEO of Chewy Ryan Cohen is joining its board. The news caused a massive short coverage, in which hedge funds and other players had to rush to cover their bets on stocks.

Meanwhile, retail investors have also accumulated, fueling the rally further. By the start of afternoon trading, more than 92 million shares of GameStop had changed hands, quadrupling their 30-day trading volume to 23.8 million.

Short selling vendor Citron Research said the stock said buyers at these higher levels were “the offshoots of this poker game,”

; according to a tweet on Tuesday. Citron said GameStop would drop to $ 20 per share “quickly.”

On Friday, Citron said it would no longer comment on GameStop because of attacks by the “angry mob” that owns the shares.

Shares rose more than 250% in 2021 after a rally of 209% last year.

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