GameStop jumps more than 130% even as hedge funds cover short bets, scrutiny of rally intensifies

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Summary

• The latest move higher comes as some of the high-profile short sellers of GameStop, including Melvin Capital and Citron, announced that they covered most or all of their positions.
• GameStop's rapid rise has drawn comparisons to speculative trading during the tech bubble of the late 1990s and led many Wall Street veterans to warn investors about the potential for significant losses.
• Bank of America raised its price target on the stock to just $10 per share on Wednesday, saying in a note to clients that the increased share price could help GameStop's turnaround plans but presented a risk for investors. "
• While it is difficult to know how much very high short interest and retail ownership ... could continue to put upward pressure on shares, we think fundamentals will again factor into valuation," the note said.