Big Bearish Retailer Exits GameStop Short But Compares GME Bullets With Meme Bullets: Is This Right?

GameStop shares may be down after a rollercoaster ride, but Citron Research, led by Andrew Left, is getting out of its short position on the video game retailer. In a post on X, Citron Research said was exiting its short position, saying the platform now has “adequate leverage” following its $4 billion investment.

Citron Research Exits GameStop Shorts, Compares GME And Meme Coins

However, since Citron Research and Left agreed to take a loss, it seems that they believe that even with billions, GameStop will not last, and the leg up was due to hype-induced.

Specifically, Citron Research acknowledged the market’s irrationality, citing Dogecoin’s mega-value. By geographic standards, CoinMarketCap data shows that Dogecoin is the most important meme currency, with a market cap of over $20 billion.

The analyst maintains a bearish view on GameStop, believing that its finances are deteriorating, a situation that justifies his initial short position.

However, the strength of another rally driven by investors, as often seen in meme coin booms, caused Citron to cut its losses. In 2021, Citron Research was forced to cut losses when GameStop’s prices increased.

However, news of Citron Research exiting their short positions in GameStop caused GME’s share price to drop. Later, some of the top crypto meme coins, including PEPE, FLOKI, and ROAR, fell in tandem.

Top Meme Coins Entering After GME Stocks Fall

CoinMarketCap data exhibitions that many meme coins have double numbers in the last trading week. Roaring Kitty (ROAR) fell 30% last week, and is still in the red in the last day, according to Coingecko data.

Interestingly, the meme’s currency is dropping just days after a much-anticipated live broadcast by Keith Gill, also known as “Roaring Kit,” failed to deliver any significant news.

It remains to be seen whether meme coins will recover after their contraction. Some analysts believe that the failure of the United States Securities and Exchange Commission (SEC) to take action against “Roaring Kitty” may cause demand, reviving a new altcoin season.

There, meme coins will be recharged, tracked higher and increase their market capitalization over $60 billion. Thanks to the plunge, the total meme market has crossed $8 billion.

Featured image from Canva, chart from TradingView