FingerMotion, Inc. (NASDAQ: FNGR), a mobile data specialist company focused on payment and recharge platform solutions in China, has recently captured the attention of investors due to an extraordinary spike in options trading activity.
On Monday, April 21, 2025, the company experienced a 279% surge in call option purchases, with investors acquiring 3,392 call options compared to an average daily volume of 895, signaling heightened market interest and speculative activity.
This unusual trading volume comes on the heels of a turbulent history involving allegations of market manipulation, a “short and distort” campaign, and a lawsuit against entities accused of spreading misinformation to depress the stock price.
Investors are now buzzing with excitement over recent gains and the potential for a short squeeze, fueled by the company’s strong fundamentals and persistent short interest.
Unprecedented Options Activity Signals Investor Confidence
The dramatic increase in call option purchases reflects growing optimism among investors about FingerMotion’s near-term prospects.
Call options, which give investors the right to buy a stock at a specified price within a set timeframe, are often used to bet on upward price movements.
The 279% jump in call option volume suggests that traders anticipate significant price appreciation, potentially driven by a combination of positive company developments and market dynamics like a short squeeze.
Social media platforms, including X, have been abuzz with posts highlighting this activity, with users like @anna_trades and @kshaughnessy2 amplifying the news and fueling retail investor enthusiasm.
FingerMotion’s stock has shown resilience despite a volatile past.
As of April 28, 2025, the stock price has risen 36.11% over the past week and 35.17% over the past month, and is now up 66% this year-to-date.
With a market capitalization of approximately $112 million and a float of 57.14 million shares, the company has garnered significant institutional interest, with hedge funds and institutional investors owning 3.90% of the stock.
Notable institutional investors, such as Anson Funds Management LP, which acquired a new stake valued at $871,000 in Q4 2024, and Bleakley Financial Group LLC, which boosted its holdings by 43.1% to own 73,000 shares, have signaled confidence in FingerMotion’s growth potential.
A History of Market Manipulation: The Short and Distort Campaign
The current wave of investor excitement must be understood in the context of FingerMotion’s challenging history with short sellers.
In October 2022, the company announced it believed it was the target of a market manipulation scheme involving naked short selling—selling shares that do not exist or have not been borrowed.
This prompted FingerMotion to retain Christian Levine Law Group and Warshaw Burstein, LLP, to investigate and prosecute those responsible for manipulating its stock price.
By October 2023, FingerMotion had become a focal point of a “short and distort” campaign, where short sellers allegedly spread false or misleading information to drive down the stock price for profit.
A report by Capybara Research, a website with a low Domain Authority of 3 at the time, accused FingerMotion of various inaccuracies and drew comparisons to another shorted stock, Knightscope (KSCP).
FingerMotion’s management swiftly rebutted the report, calling it riddled with “errors, unsupported speculations, and inaccurate interpretations.”
The company retained securities litigation attorney Mark R. Basile and The Basile Law Firm P.C. to investigate the Capybara Research report and pursue legal action against those attempting to harm shareholders through unlawful means.
Retail investors, often vocal on platforms like X, rallied behind FingerMotion, accusing Capybara Research and associated parties of orchestrating a coordinated attack.
Social media influencers such as BusyBrands and RealAvidTrader were wrongly targeted in the Capybara report as alleged paid promoters, further escalating tensions between retail investors and short sellers.
The report led to a decline in FingerMotion’s stock price, which fell more than 11% in the month following the report’s release, though the stock was still up 114% year-to-date at that point.
Also Read: Trump Is Now Taking on Illegal Short Selling After Threat
Legal Progress and Settlement with Benzinga
In November 2023, FingerMotion provided an update on its legal efforts, announcing a settlement with Benzinga, one of the news outlets implicated in the short and distort campaign.
The company continued its lawsuit against Capybara Research and other entities, signaling its commitment to protecting shareholder value.
This development was seen as a victory by retail investors, who viewed it as evidence of FingerMotion’s determination to combat market manipulation.
The lawsuit also highlighted broader issues with naked short selling, a practice that has drawn scrutiny globally, including in South Korea, where regulators launched probes into illegal short-selling by global investment banks.
FingerMotion’s proactive stance against short sellers has resonated with its retail investor base, many of whom see parallels with high-profile short squeeze plays like AMC Entertainment and GameStop.
In July 2023, data indicated a high probability of a short squeeze, with short volume soaring past 1.6 million shares and total trading volume reaching 3.2 million on a single day.
The average short squeeze trigger price was estimated at $5.28, fueling speculation that a rapid price increase could force short sellers to cover their positions, driving the stock higher.
Bookmark: A Congresswoman Now Introduces Bill To End FINRA
Current Investor Sentiment and Short Squeeze Potential
As of March 31, 2025, short interest in FingerMotion stood at 2,550,000 shares, a 25.6% increase from mid-March, with 6.1% of the float sold short.
The days-to-cover ratio, which measures how long it would take short sellers to buy back their shares based on average daily trading volume, was 10.6 days, indicating significant bearish sentiment.
However, this high short interest also sets the stage for a potential short squeeze, as any positive catalyst—such as strong earnings, new contracts, or further legal victories—could trigger a rush by short sellers to cover, pushing the stock price higher.
Retail investors are particularly excited about FingerMotion’s recent gains, with the stock’s 36.11% weekly increase and technical indicators suggesting a buy rating.
Posts on X reflect this enthusiasm, with users pointing to the options trading surge as a sign of impending upward momentum.
The company’s fundamentals also support investor optimism.
FingerMotion operates in China’s massive telecommunications market, offering mobile payment and recharge services, data plans, and a proprietary Rich Communication Services (RCS) platform for 5G infrastructure.
Its Sapientus big data insights platform targets industries like insurance, healthcare, and financial services, positioning the company for growth in high-demand sectors.
Recent developments, such as FingerMotion’s contracts to deliver vehicles equipped with advanced satellite communication platforms and the national certification of its Command and Communication (C2) platform by China’s Ministry of Industry and Information Technology, have further bolstered investor confidence.
These achievements highlight the company’s ability to innovate and secure high-value partnerships, even amidst market challenges.
Also Read: Goldman Sachs: Hedge Funds Now On Alert For Short Squeezes from Retail Investors
Challenges and Risks Ahead
Despite the optimism, FingerMotion faces challenges.
The company reported a negative earnings per share (EPS) of ($0.03) for Q3 2024, with a negative return on equity of 49.46% and a net margin of -18.29%, reflecting ongoing profitability struggles.
The stock’s high volatility, with an 11% weekly volatility rate, and a beta of -0.76, indicate it is prone to sharp price swings.
Additionally, the bearish sentiment reflected in the stock’s Moving Average Score of 20 and Technical Score of 31 suggests that downward pressure remains a concern.
While the settlement with Benzinga was a positive step, a failure to secure favorable resolutions against other defendants could dampen investor enthusiasm.
Moreover, the broader issue of naked short selling, which FingerMotion has flagged as a systemic problem, continues to pose risks to the stock’s stability.
Also Read: Andrew Left’s Motion to Dismiss Manipulation Case Has Been Rejected
Looking Forward: A Potential Turning Point
FingerMotion stands at a pivotal moment.
The surge in options trading, combined with persistent short interest and a loyal retail investor base, has created a perfect storm for a potential short squeeze.
Investors are hopeful that upcoming catalysts, such as the next earnings report on May 28, 2025, or further legal victories, could propel the stock toward its short squeeze trigger price of $5.28 or beyond.
The company’s innovative offerings in China’s telecommunications and big data sectors, coupled with its aggressive stance against market manipulation, position it as a compelling story for both retail and institutional investors.
For now, FingerMotion’s retail community remains energized, with many drawing inspiration from past meme stock successes.
As one X user noted, “$FNGR showing insane reverse… Expecting minimum 100-150% bounce.”
While risks remain, the combination of technical momentum, legal progress, and growing investor interest suggests that FingerMotion could be on the cusp of a significant breakout.
Investors will be watching closely to see if the company can capitalize on this momentum and deliver the short squeeze many are hoping for.
Back to Daily Market News.
Follow Frank Nez on X for more community insights.
Also Read: Trump Media Says Senator Warren Has Protected Hedge Funds and Naked Short Selling
Latest Market News Today
About The Author
