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The stock price of  GameStop Corp (NASDAQ: GME) rose to over 78% on Friday, reaching an all-time high of &76.76 per share. The trading in GME shares was halted several times due to high volatility.

GameStop shares ended trading at $65.01 each, up by 51% on Friday. After-hours, the stock shed another 6% to $61 per share. Year-to-date, the company's stock price increased more than 250%. 

The fight between GameStop Reddit day-traders and Citron Research

The parabolic surge of GameStop comes amid a steady and increasing number of short-sellers betting against the stock. Based on the latest filings, more than 138% of the company's float shares were sold short. It is the most shorted company in the U.S. stock market, according to FactSet.

The stock price of the Texas-based video games retailer initially climbed last week after announcing that activist investor and Chewy CEO Ryan Cohen will join its Board of Directors. The news prompted short-sellers to cover their bets against the stock.

Meanwhile, Reddit day-traders or retail investors were encouraged by the addition of Cohen to GameStop's Board. They acquired more GME shares, driving its stock price even higher.

It is also noteworthy that GameStop's parabolic rise triggered a battle between the bulls and short-sellers who are looking to make a quick profit from their bets.

In particular, vocal Reddit day-traders attacked Citron Research Managing Partner Andrew Left for predicting that GameStop's share could crash to $20 per share.

Tomorrow am at 11:30 EST Citron will livestream the 5 reasons GameStop $GME buyers at these levels are the suckers at this poker game. Stock back to $20 fast. We understand short interest better than you and will explain. Thank you to viewers for pos feedback on last live tweet

— Citron Research (@CitronResearch) January 19, 2021

Mr. Left was supposed to explain his reasons for shorting the company's stock via live-stream but decided to just record a video because his Twitter account was restricted due to hacking attempts and reports from angry GameStop traders.

Too many people hacking Citron twitter, will record and post later today. $GME going to $20 buy at your own risk

— Citron Research (@CitronResearch) January 21, 2021

Below is the video posted by Mr. Left explaining why he believes GameStop's stock price will plunge back to $20 a share. He said the decline will happen "fast."

https://t.co/HleTTWSpR6

— Citron Research (@CitronResearch) January 21, 2021

In the video, the short-seller also stated that he'd "never seen such an exchange of ideas of people so angry about someone joining the other side of a trade." He was referring to some of the Reddit day-traders who have been very outspoken in promoting their bullish opinion on GME shares.

On Friday, the short-seller said he will no longer comment on GameStop following the reactions of "an angry mob" who are bullish on the stock.

“We are investors who put safety and family first and when we believe this has been compromised, it is our duty to walk away from a stock,” wrote Mr. Left in a letter. 

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