Short Sellers Lose $1 Billion on GME: AMC and GameStop (GME) Spearhead Meme-Stock Surge

  • Meme stocks, including GME, AMC, KOSS, and BlackBerry, are experiencing a significant rally, with short sellers reportedly losing nearly $1 billion on GameStop stock during Monday’s surge.
  • AMC Entertainment has raised $250 million of equity capital after selling 72.5 million shares, while Citi has lifted its price target on AMC stock.
  • GameStop short sellers suffered $838 million in market-t0-market losses during Monday’s rally, with analysts expecting more short covering on GME going forward.

Amid a significant rally in meme stocks, AMC Entertainment raises $250 million in equity capital, while GameStop short sellers face substantial losses. This article delves into the current state of meme stocks and their impact on the market.

AMC Raises Equity Capital

AMC Entertainment announced on Tuesday that it raised $250 million of equity capital after selling 72.5 million shares at an average price of $3.45 per share. Citi has subsequently lifted its price target on AMC stock to $3.20 from $3.10, noting that AMC’s Q1 revenue and adjusted EBITDA were in-line with its preliminary results from May 8. Citi expects AMC to use the new equity to pay down a portion of its debt, although it still believes AMC remains overvalued at current levels.

GameStop Short Sellers Suffer Losses

GameStop short sellers reportedly suffered $838 million in market-t0-market losses during Monday’s rally. Data firm S3 Partners indicates that GME stock had a 100/100 “squeeze score” prior to Monday’s trading, suggesting a greater risk of a short squeeze relative to its peers.

Roaring Kitty Sparks Rally

GameStop stock and AMC shares soared after Keith Gill, known by his social media name Roaring Kitty, returned to social media for the first time in three years. Gill, a key driver for the GameStop short squeeze, posted an image of a meme implying he is “getting serious,” sparking excitement among retail investors.

Recalling the Previous Short Squeeze

In 2021, GME stock surged 688% as individual investors coordinated a buying spree in the video-game retailer’s shares using online message boards. This caught short sellers by surprise, leading to a massive short-squeeze rally. The saga was detailed in the movie “Dumb Money.”

Current Meme Stock Action

GME stock soared another 98% early Tuesday, adding to its 74.4% rally Monday. AMC stock jumped 121% at the open Tuesday, rebounding to its highest price since September. Other meme stocks, including Koss and BlackBerry, also climbed early Tuesday as the GME and AMC rallies gained steam.


The current rally in meme stocks, sparked by the return of Roaring Kitty, has led to significant market activity. While AMC has capitalized on the trend by raising substantial equity capital, GameStop short sellers have faced considerable losses. As the situation continues to unfold, investors are closely watching these stocks and their potential impact on the market.

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Gideon Wolf
Gideon Wolf
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.

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