GameStop Shares Higher Sprint After Lemon Dropped

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Shares of video game retailer GameStop (EMG) – Get the Class A report from GameStop Corp. surged on Friday, after Andrew Left, managing partner at short seller Citron, said he was dumping the stock due to harassment from the bulls.

GameStop shares hit a record high and closed Friday up 51% at $65.01. They are trading at 15 times their level of six months ago. Investors went wild for some stocks that benefited from consumers staying home during the coronavirus pandemic.

As for Left, “What Citron has been through in the past 48 hours is nothing short of a shameful and sad commentary on the state of the investment community,” he wrote in a letter on Citron’s Twitter page.

“We will no longer comment on GameStop, not because we don’t believe in our investment thesis, but rather the angry mob that owns this stock has spent the last 48 hours committing multiple crimes which I will turn over to the FBI, SEC and other government agencies.

Moreover, “It’s not just about insults and hacking, but also serious crimes such as the harassment of underage children. We are safety and family first investors, and when we believe that has been compromised, it is our duty to exit a stock, Left said.

“We hope the government’s enforcement will eliminate this problem for any future market commentators whose families are terrorized by people who naively think they are anonymous.”

In one YouTube interview with Benzinga on Thursday, Left explained why GameStop shares will “return to $20.” He said, “pretty much their business is in terminal decline.”

Founder of TheStreet Jim Cramer said Friday’s stock move is a classic short squeeze. How does this work? Short sellers borrow stocks and sell them back, betting that the stock will go down. When the stock price rises, short sellers must buy back the shares at the higher prices to return them to the lender. These purchases can cause the price of the stock to rise even further, and this situation can then be repeated.

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