GameStop Corp. extended its surge Wednesday as bullish day traders kept the upper hand over short sellers who started to capitulate. The meteoric rally has left short sellers counting the cost in a battle with day traders who have taken to Reddit to encourage others to follow their lead. Melvin Capital closed out its short position, while Citron Capital’s Andrew Left said the firm covered the majority of its short in “the $90’s at a loss of 100%." “It does feel like rationality and fundamentals are just kind of dead," J Capital Research co-founder Anne Stevenson-Yang said by telephone. “If you’re short you’re in a very difficult position because you have to buy the stock to get out, so you end with a heavily overvalued stock."

Source: Mint January 27, 2021 15:51 UTC