Those moves do not approach the stunning, nearly 1,700% gain in video game retailer GameStop Corp in January, which was fueled in part bythat forced hedge funds like Melvin Capital to unwind their bets against the stock, sending it higher. Shares of the video game retailer and many other meme stocks that rallied in its wake are well off their highs, and retail trading has dropped from levels seen earlier in the year.
Average short interest in a basket of 50 stocks with market capitalization of under $100 billion monitored by Vanda Research has climbed to levels last seen in January, the firm said in a report earlier this week. MicroVision, which traded below $1 as recently as June 2020, is up 210% since short seller Hindenburg Research said it was betting against the company’s stock on Dec. 22, illustrating the potential dangers bearish investors face when positioning against meme stocks. Hindenburg Research did not respond to requests for comment.