About four months ago, GameStop’s (NYSE: GME) stock price was just $6. It was also one of the most shorted stocks in the U.S. stock market, with more than 138% of its traded/float shares sold short.
P.S. More than 100% of a stock’s floated shares can be shorted like this:
For example, a listed company has 20 outstanding float shares. Broker W holds a long position on 20 shares. Broker X then borrows shares from broker W and sells short to broker Y. Broker can then borrow another 20 shares from broker Y and sell short to broker Z. As a result, there are not 40 shares sold short on the 20 outstanding shares.
But that all changed.
After a 209% rally in 2020, Gamestop (NYSE: GME) is now up 345% year to date.
The stock jumped as much as 145% on Monday (25 Jan 2021) in a turbulent trading session with nine trading halts.