Two thinly traded U.S. micro-cap stocks staged explosive intraday rallies on Monday, driven by what appears to be a retail-fuelled short squeeze. VAPE climbed from roughly $56 to about $140 in less than half an hour shortly after the market opened, while VWAV more than doubled from pre-market levels around $4.60 to almost $12 by mid-afternoon. Penny-stock trader and educator Timothy Sykes, who has more than one million social-media followers, highlighted both moves in real time, attributing the gains to over-extended short sellers scrambling to cover positions. Sykes said he began flagging VWAV when it traded below $5 and noted that aggressive short covering later pushed the stock above $11. The abrupt swings underscore the heightened volatility that can grip low-float shares when retail traders converge on heavily shorted names. Such stocks often lack the liquidity and fundamental support of larger companies, making price spikes vulnerable to sharp reversals once buying pressure subsides.
JUST OVER 10 MINUTES AGO I TWEETED ABOUT $VWAV IN THE HIGH $9S, NOW INTO THE HIGH $11S....WHAT AN AWESOME SHORT SQUEEZE, PLEASE READ https://t.co/10xyf95HWt AND EDUCATE YOURSELF! https://t.co/6lXWh9Up0Z https://t.co/lv95ygHnIY
$VWAV This member nailed it! 👏 👏👏 https://t.co/iiZJHOzWpf
Just to give you some perspective, when I tweeted about $VWAV premarket it was in the $4.60s, now into the $9.70s and I sold it like a damn coward in the mid $6s....RETWEET THIS IF YOU REALIZE HOW MUCH INCREDIBLE UPSIDE THERE IS RIGHT NOW THANKS TO OVER-AGGRESSIVE SHORT SELLERS! https://t.co/eVeQVoabRu https://t.co/S74wbNtebL