Short Squeeze Sends GameStop Shares to 2007 Levels. What Happens Next.

GameStop stock rocketed above its 2007 peak Friday in a move that one short selling expert thinks could possibly kill investor interest in shorting the videogame retailer. Surging volatility also led to brief halts in trading.

Pointing to an earlier squeeze where a moderate amount of older short sellers covered their positions as the stock surged in recent weeks, S3 Partners’ Ihor Dusaniwsky told Barron’s he thinks today’s action has piled up mark-to-market losses for even newer short sellers betting on a price decline.