Shares of U.S. videogame retailer GameStop skyrocketed by 144% yesterday as short sellers scrambled to cover their positions in the stock, which then pared gains in a roller coaster session that featured nine trading halts for volatility, Reuters reported. Options activity also surged in the stock, which had gained 245% so far this year as of Friday’s close. It closed Monday’s session up 18% with $16.7 billion worth of GameStop shares traded — more than triple the company’s actual stock market value. Short sellers had bet against the stock because they viewed GameStop’s retail business model as outdated. But GameStop shares began to rise after the video game retailer’s announcement on Jan. 11 about appointments to its board to double down on digital sales. The buying frenzy as short sellers rushed to cover positions enticed retail investors to pile on in hopes of riding the stock’s momentum higher.
