The controversial GameStop (GME) stock rally saw its second day of reversal on Monday, ending the US trading session down 12% after a 40% drop on Friday. This has led to a squeeze on some tokens that tend to mirror the stock’s movements.
GME stock ended trading Monday at $24.89, down 62% from its two-year high of $61 last Thursday. Elsewhere, the Solana-based meme token GME, which mimics the company, fell 25%, reversing a rise of more than 200% from the past seven days.
Related tokens like Roaring Kitty (KITTY) and some cat-themed tokens, which previously moved in tandem with GME shares, lost at least 10% on average, according to data tracked by CoinGecko.
The Doge (DOGE), Shiba Inu (SHIB) and Floki (FLOKI) tokens pared their gains from last week, falling from 4% to 10%.
The stock has moved significantly since late May due to the apparent return of retail trader and GME bull Keith Gill for the first time since 2021. Gill, known by the nicknames TheRoaring Kitty and DeepF*uckingValue, has been a key figure in the stock’s move. Short squeeze rally in 2021.
Gill demonstrated a $580 million position in GME stock and options holdings last week, boosting stock prices and putting him on track for a potential $1 billion exposure position.
But the gains were dashed after the company said it would sell up to 75 million shares, days after it made $933 million from the sale of 45 million shares. It also announced a decline in quarterly sales, dampening investor sentiment.
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