Shares in U.S. video game retailer GameStop rose 60 percent today as online retailers apparently congregating on Reddit continued to cause the stock to skyrocket

The shares in GameStop have risen by 250 percent so far this year This is because short sellers are quick to buy back stocks to cover potential losses

But there’s an ongoing battle between Reddit day traders and short sellers that has resulted in a short squeeze

According to the Financial Times, GameStop was a popular daytrader stock on the Reddit forum r / wallstreetbeats

A tug of war broke out late last week after short seller Citron Research said it placed a bet against the stock and that the company was “pretty much in the decline of the end” In response, Reddit day traders pushed the stock price through the roof

Last week Citron tweeted about GameStop stock and would describe GameStop buyers as “fools at that game of poker.” GameStop was priced at $ 160 per share this morning

Tomorrow at 11:30 am EST, Citron will be broadcasting the 5 reasons GameStop $ GME buyers at these levels the fools at this game of poker, stock quickly back to $ 20. We understand short interest better than you and will explain it Thanks to the viewers for the feedback on the last live tweet

Trading in stocks ceased on Friday after Reddit Day traders pushed the stock price up 70 percent

Short sellers usually borrow and sell stocks of companies that they expect to fall in price in hopes of buying them back at a lower price and making up the difference

The trading strategy carries a high level of risk as losses are theoretically unlimited if the stock rises instead of falling

This morning at 11:19 a.m., GameStop shares rose 468 percent at $ 9510 in premarket trading in the US, while cash trading in Germany was up more than 70 percent

“I think this morning this is like a carousel: US. Retail is adding fuel to the fire on Friday, causing German retail to buy massively (…) and then US. Traders see this massive increase overnight and are piling up again, “said a Berlin-based trader

GameStop, gme stock, gamestop stock

World news – GB – GameStop has a 60 percent stake in the Reddit tug-of-war – CityAM

Source: https://www.cityam.com/gamestop-shares-up-60-per-cent-in-reddit-driven-tug-of-war/