Some hedge funds and other institutional investors face higher collateral requirements or are limited in shorting certain stocks, Bloomberg reports.
GameStop stock has witnessed a resurgence of late, but short interest remains elevated at around 20%, according to data from S3 Partners.
The GameStop craze "has heralded a new generation of enthusiastic and engaged investors," BMO said in its survey results.
GameStop tweeted a photo last week of an astronaut on the moon, marked with the company logo. It later deleted it.
Investor Ryan Cohen, who owns nearly 13% of GameStop, is leading major moves at the company and intends to transform it into the Amazon of gaming.
Shares were already up before the announcement, buoyed by the company's steps towards making major changes led by activist investor Ryan Cohen.
While GameStop is down 66% from its record-high of $483, the stock is still up 776% year-to-date, based on its current price.
Bitcoin priced at infinity seems to indicate that the show's creators are either very bullish on digital assets, or believe the system will crumble.
Woo downgraded the company's stock to "sell" from "hold," and lowered his 12-month price target to $10 per share from $12.
GameStop's $16 price target from CFRA Research represents 91% downside potential from its current price of $177.
Cohen, who co-founded online pet supply store Chewy and is a major GameStop investor, has been leading efforts to turn the chain around.
"The market price of our common stock has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control," GameStop said.
The daily average percentage move in shares of GameStop stands at 21%, compared to just 3.6% for bitcoin, according to Bespoke.
GameStop bulls are wearing "rose-tinted glasses" according to CFRA analyst Camilla Yanushevsky, who holds a "sell" rating for the Reddit darling.
Moving averages are a lagging trend-following indicator that traders use to smooth out price movements and help identify the direction of a trend.
GameStop received a $175 price target from Jefferies' Stephanie Wissink on Wednesday, fanning the flames on Reddit's Wall Street Bets forum.
"The volatility is super high… and that promotes an ability to make some money," Pimco co-founder Bill Gross said.