Well-known short-seller Citron Research announced Wednesday that it had closed its short position in the popular meme stock GameStop (NYSE: GME). 

The firm’s founder, Andrew Left, recently revealed that he was once again betting against the company, albeit with a significantly smaller position compared to 2021 when he was forced to close his short position when the stock exploded due to a massive rally driven by retail traders.

Citron Research said on X, “It’s not because we believe in a turnaround for the company fundamentals will ever happen, but with $4 billion in the bank, they have enough runway to appease their cult like shareholders.” Left also told Reuters that Citron had closed the short position at a profit, but the publication noted that “he did not disclose the size.”

Following Citron’s announcement, GameStop’s stock experienced a notable decline, falling 17% on Wednesday afternoon. The move by the short seller appears to have had a significant impact on investor sentiment, as the stock had been on a roller coaster ride over the past 10 days, including a 23% increase on Tuesday. 

Despite the recent volatility, GameStop’s stock has gained 74% year-to-date, largely driven by the renewed interest from retail investors and the return of influential figures like Keith Gill, also known as “Roaring Kitty.”

Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.