The GameStop stock plummeted Tuesday, losing more than half of its opening value and falling to its lowest level in a week.
GameStop’s stock fell to $ 90 towards the end of Tuesday trading, a 60 percent loss that scaled $ 135 from the opening price.
GameStop stock has been steadily declining since Thursday after peaking at $ 483, about 1,800 percent higher than the price at the start of the year.
The brutal two-day trajectory for GameStop could be the death knell for a Reddit-organized crusade against hedge funds who spent billions shorting the struggling retailer’s stock, betting it would continue to lose value.
Members of the Reddit sub-forum r / WallStreetBets have pushed up the price of GameStop shares by steadily buying shares in an attempt to squeeze briefly before the momentum started to fade.
GameStop’s losses also came on a strong day for the market overall, with all three major US stock indices closing on Tuesday with gains of around 1.5 percent. Other stocks targeted by Reddit traders for short squeezes also faltered on Tuesday, including AMC Entertainment (-2.6 percent), BlackBerry (1.4 percent) and Nokia (0.7 percent).
Whether GameStop shares will rebound remains to be seen, given the incredible volatility driven by the viral rallies and the dedicated nature of some buyers. Still, GameStop shares continued to lose value during out-of-hours trading, implying further losses on Wednesday.