GameStop has faced a Short Sale Restriction (SSR) on the NYSE following a dramatic surge in short sales, which increased by 234% in just 24 hours, totaling 30.85 million shares on March 27. This rise in volume echoes the notorious short squeeze of 2021. The SSR is triggered when a stock drops more than 10% from its prior day's close, and GameStop's stock fell 22% after initial gains related to a Bitcoin purchase announcement. Analysts have raised concerns about GameStop's plans to invest in Bitcoin, describing it as reminiscent of the dot-com bubble. Arguments have been made that this sudden rise in short selling could denote potential naked short-selling. Observers note the historical significance of short sales surrounding GameStop, recalling both the highest volumes from January 2021 and a peak in June 2024, when trader Keith Gill re-entered the market. The release of convertible senior notes by GameStop, intended for general corporate purposes, might have also contributed to the stock's decline, paralleling past market trends with similar instruments.

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