GameStop shares, after a volatile period, might decline further as Citron Research, led by Andrew Left, exits its short position on the retailer. Citron announced on X that they are exiting, citing GameStop's improved prospects following a $4 billion cash infusion.

Citron Research Exits GameStop Shorts, Compares GME to Meme Coins

Despite this, Citron and Left remain skeptical about GameStop's longevity, attributing its recent gains to hype. They compared GameStop's market irrationality to Dogecoin's high valuation, which CoinMarketCap shows is the most valuable meme coin with a market cap over $20 billion.

Citron continues to hold a bearish view on GameStop, citing deteriorating financials, which initially justified their short position. However, to avoid further losses from potential retail investor-driven rallies, similar to meme coin surges, Citron decided to exit their short position. In 2021, Citron faced significant losses when GameStop's shares skyrocketed.

News of Citron's exit led to a drop in GME share prices. This also impacted top meme coins like PEPE, FLOKI, and ROAR, which saw declines.

Meme Coins Plunge After GME Shares Fall

CoinMarketCap data indicates that most meme coins have dropped by double digits in the past week. Roaring Kitty (ROAR) is down 30% for the week, continuing its decline according to CoinGecko.

The decline comes shortly after a highly-anticipated live stream by Keith Gill, aka “Roaring Kitty,” failed to provide substantial news.

Some analysts believe the lack of SEC action against “Roaring Kitty” could boost demand, potentially sparking a new altcoin season and lifting meme coin market caps above $60 billion. However, the recent plunge has reduced the total meme market cap by over $8 billion.