Retail investors are now speculating a new GameStop short squeeze after the retailer’s short interest spiked last week.
GameStop has recently popped up on the radar again following CEO Ryan Cohen’s latest GME stock buy.
Cohen, who’s been hailed for his strong support of GameStop investors, purchased around 1.15 million shares of GME stock, roughly a $22.94m-$26.4m purchase.
The bullish bet goes against a renewed spike in GameStop short interest.
Retail investors were quick to point out on social media platforms X and Reddit data representing approximately 33 million shares sold short on Monday, September 21.
Sentiment across social media is intensifying again surrounding another GameStop short squeeze as the stock finds its footing this year-to-date posting gains of 13.43%.
Speculation of a GameStop Short Squeeze Intensifies Online
Investors share GameStop short interest on Reddit fueling speculation of a new GameStop short squeeze.
Reddit users have shared screenshots of GameStop’s short interest spike across various subreddits, including r/Superstonk, r/GME, and others.
The speculation of a GameStop short squeeze has also intensified on X, formerly Twitter, with ‘GME’ trending towards the end of the week.
“Ryan Cohen does it again!! There is a clear game plan that includes executive share purchases, it is one of the few things the algorithm likes.
Despite the insider buying there are some shorts out there trying to manipulate the stonk. The short interest rose over 3000% yesterday from nearly nothing to 33M shares!!! Still the stock went UP!!,” reported on Reddit user.
Others, despite a good hype, point towards the possibility of a return swap.
“Let me explain you what most likely happened. It is not a proper short because it’s probably a CFD total return swap.
Bank has 30m shares laying around. Some shorter comes to bank and says he wants to enter a total return swap. Bank writes in their books that they agreed to a total return swap at price X for a monthly payment of [Y].
Short interest on paper rises but in reality, no sell hits market.
Since the short selling of 33m shares didn’t reflect on the price, it’s probably no common short but a total return swap.”
Humorously, another user stated, “I’m ready to be hurt again”, in anticipation of a major price shift.
But GameStop’s short interest isn’t the only thing making its rounds of talk on social media.
Why Cohen’s Purchase of GME Stock Matters
Cohen’s latest purchase of GME stock has historical data tying it to GameStop’s initial short squeeze in 2021.
One Redditor pointed out that “RC bought shares six years ago perfect to a T (21. September) before the 2021 short squeeze occurred. Furthermore, on that same day, RK [Roaring Kitty] published a post pointing to his livestream, which was titled: “Has the short squeeze in GME stock kicked off?” All I can say is: he/they are making a [s]equel!”
The post gained nearly 3,000 upvotes, reflecting a highly positive retail investor sentiment behind the speculation.
Anticipation is building around GameStop’s next major leg up.
“I’m convinced if this stock hits $50 the squeeze will be on. We haven’t seen anything above 32 in years.
But what do I know; I eat crayons and smell colors,” shared user hmoonves.
Keith Gill, AKA Roaring Kitty, r/deepfuckingvalue.
GameStop investors are bullish, but fundamentally, the retailer has critics.
Tim Sykes points towards repeated rejection in the mid‑$24s while 5‑minute action highlights heavy liquidity and churn around $23.50–23.75 following the CEO’s share purchases.
“The dominant short‑term trend is consolidating above $23. A defined actionable level: $23.00 is key support; a decisive close below it opens a trade toward the high‑$21s, while sustained trade above $24.90 would target $27.”
A modern GameStop short squeeze is not farfetched.
The data behind the retailer’s first massive run originally surfaced from Keith Gill and Reddit.
While the hype is still very real, it’s the momentum and sheer buying power that will be required from retail investors if they are to squeeze Wall Street one more time.
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Frank Nez is an American entrepreneur, journalist, writer, and investor. Frank's work has been cited by SEC and Congressional reports. Franknez.com is a personal finance and market news publication, dedicated to publishing content on money, investing, entrepreneurship, and retail investor news.
