Major Bearish Trader Pulls Out of GameStop Shorts, But Compares GME to Meme Coins: Is It Fair?

GameStop shares may be tumbling after a rollercoaster ride, but Citron Research, led by Andrew Left, is pulling back from its miniature position in the video game market. In a post on X, Citron Research he said was exiting its miniature position, saying the platform now had “ample runway” following a $4 billion cash injection.

Citron Research Pulls Out GameStop Shorts and Compares GME Coins to Memes

However, even as Citron Research and Left have come to terms with the loss, they seem to believe that even with billions, GameStop will not survive and that the promotion was simply driven by media hype.

Citron Research, in particular, confirmed the irrationality of the market, citing Dogecoin’s huge mega valuation. At CoinMarketCap spot rates data shows that Dogecoin is the most valuable meme coin with a market capitalization of over $20 billion.

Dogecoin is the most valuable meme coin | Source: CoinMarketCap

The researcher maintains a bearish stance on GameStop, believing that its financials are deteriorating, justifying its initial miniature position.

Still, the potential for another retail investor-driven rally, often seen in the meme coin boom, led Citron to cut its losses. In 2021, Citron Research was forced to cut losses after GameStop’s stock price soared.

GameStop share prices fall | Source: NYSE, TradingView

However, news of Citron Research exiting its miniature position on GameStop sent GME stock prices lower. Then, some of the most popular cryptocurrency meme coins, including PEPE, FLOKI, and ROAR, fell in tandem.

Top meme coins fall after GME stock declines

CoinMarketCap data to introduce that most meme coins dropped by double digits last week. According to Coingecko, Roaring Kitty (ROAR) dropped 30% in the previous week and was still in the red over the past day data.

Roaring Kitty Prices Fall | source: Coingecko

Interestingly, the price of memes is dropping just days after the highly anticipated livestream of Keith Gill, aka “Roaring Kitty,” failed to deliver any major news.

Time will tell if meme coins will recover from the contraction. Some analysts believe that the failure of the U.S. Securities and Exchange Commission (SEC) to take action against “Roaring Kitty” could spur demand, sparking a modern season for altcoins.

This will see the meme coins supercharged, tracking higher values and pushing their total market capitalization above the $60 billion mark. As a result of this decline, the total market capitalization of memes dropped by over $8 billion.

Feature image from Canva, chart from TradingView