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18h ago

Meme Stock Rally Persists as Opendoor and Kohl’s Drive New Short Squeezes

Coordinated social media buying has forced short sellers to cover, triggering erratic rallies in stocks like Opendoor and Kohl’s.

People walk near a Kohl's department store entranceway on June 7, 2022 in Doral, Florida.
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Krispy Kreme was once known for giving away free doughnuts in the US on “Talk Like a Pirate Day”
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Overview

  • Retail traders have continued to drive volatile rallies in heavily shorted names, with Opendoor rising 19% on July 24 after a 400% month-to-date surge.
  • Kohl’s stock, which briefly doubled on July 22 before a trading halt, resumed its upward trend with a 10.5% gain on July 24.
  • Tiny Healthcare Triangle saw its share price more than double to 5 cents on July 24, accounting for roughly 15% of total U.S. trading volume that day.
  • Goldman Sachs reported that speculative trading in the most-shorted stocks has lifted a key basket of names by about 60% since April, marking one of the steepest short squeezes on record.
  • Market strategists warn that this social media-fueled euphoria heightens the risk of a sharp pullback, even as broader economic fundamentals remain solid.