The stock of video game retailer GameStop (NYSE: GME) is skyrocketing today in an apparent short squeeze, with short-sellers buying up shares in massive quantities to cover the liquidation of their positions. GameStop’s shares were up nearly 70% as of 1:54 p.m. EST today.
Short interest in GameStop was noted as being a significant percentage of its total float at the start of this week, and today’s explosive stock market movement seems to be a short-seller response to an announced agreement with activist investor RC Ventures.
While GameStop’s shares rose approximately 17% in trading Monday, that was dwarfed by today’s gains. The company says it will place three candidates advanced by RC Ventures — Jim Grube, Alan Attal, and Ryan Cohen — on its board of directors. The appointments are effective immediately, raising the number of directors from 10 to 13.