Folks on Reddit and Twitter have decided that GameStop should not have such a low share price. The price has increased over 600% since the antics have begun, forcing the folks who shorted GameStop's stock into more and more precarious positions.
GameStop has been a popular short target on Wall Street. In fact, more than 138% of its float shares had been borrowed and sold short, the single most shorted name in the U.S. stock market, according to FactSet citing the latest filings.
On Jan. 11, news broke that activist investor and Chewy co-founder and former CEO Ryan Cohen is joining GameStop's board. The stock jumped on the announcement on hopes Cohen would drive a change in strategy. The gain triggered a rush of short covering from hedge funds and traders who bet against the stock. When a shorted stock trades sharply higher, short sellers would have to buy back shares to cut their losses, which fuels the rally.
GameStop has also been a hot topic in online chat rooms, Twitter and Reddit as some retail investors and day traders aim to push shares higher and squeeze out short sellers.
One post on the popular "wallstreetbets" Reddit Monday morning said "IM NOT SELLING THIS UNTIL AT LEAST $1000+ GME." The post quickly drew more than 2,000 comments.