Short-seller Citron, a target for some of the individual traders who have helped drive huge gains for a number of niche Wall Street stocks in the past week.
GameStop's stock has surged nearly 700% in the past two weeks, upping the struggling video retailer's market value from $1.24 billion to more than $10 billion.
GameStop’s stocks skyrocketed by 160% in a matter of hours on Monday to an all-time high of $159, giving birth to the ‘Meme Stock’ bubble in the stock market.
Traders believe that the reasons for the jump in the shares are short-sellers quickly buying back into the stock to cover potential losses, defined as a short-squeeze.
The trading strategy is high risk in that losses are theoretically unlimited when the stock rises instead of falling.