GameStop Shares Surge as Michael Burry’s Big Bet Revealed - 2026 Market Shocker
Another day, another meme stock frenzy—but this time, it's got a famous face behind it.
The Catalyst
News broke that Michael Burry, the investor famously portrayed in 'The Big Short,' has been quietly accumulating GameStop shares. No fancy derivatives or complex algorithms here—just old-fashioned stock picking that sent the ticker GME on a vertical climb. The market, ever the reactive beast, responded with the subtlety of a sledgehammer.
Sentiment Over Substance?
The move raises eyebrows. Burry built his reputation betting against systemic rot, not chasing retail-fueled rallies. His pivot into a company once at the heart of a historic short squeeze feels like a plot twist Wall Street didn't see coming. It's a stark reminder that in today's markets, a single name can move billions in value faster than any earnings report—proving once again that finance is often more about narrative than numbers.
The Aftermath
Trading volumes spiked, social media lit up, and analysts scrambled to update their models. Whether this is a calculated value play or a tactical gamble is Burry's secret. For everyone else, it's another volatile ride on the sentiment express, where one investor's conviction can still shake the entire board. Just don't call it a comeback until the closing bell rings.
Burry lays out a long-term value bet
Michael recently shut down Scion Asset Management. He said this position is a long-term value play. He said it is not based on renewed meme stock action. GameStop became famous about five years ago during a retail trading frenzy.
Online traders pushed prices higher and forced hedge funds to cover short positions. That period ended. Trading later calmed down, and speculation faded.
Michael wrote, “I am not counting on a short squeeze to realize long-term value.” He added, “I believe in Ryan, I like the setup, the governance, the strategy as I see it.” He also said he is willing to hold the stock long-term and be patient. He noted that he is fifteen years older than Ryan and still prepared to wait.
After the meme surge ended, GameStop gave back most of its gains. The stock later traded around $25 a share. Even so, the company used heavy investor interest in the past to raise billions of dollars through equity offerings. Those sales left GameStop with a large cash balance.
Michael addressed that directly. He wrote, “Ryan is making lemonade out of lemons.” He added, “He has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash and wait for an opportunity to make a big buy of a real growing cash cow business.”
The video game retailer also started buying bitcoin last year. The decision followed a similar approach taken by MicroStrategy, now known as Strategy. Ryan said the move was driven by macro concerns.
He said bitcoin’s fixed supply and decentralized design could protect against certain risks. Michael reacted cautiously and wrote, “I do not know about this Bitcoin thing, but I cannot argue with what has been done so far.”
Michael is not alone in backing the company. Just last week, Ryan bought 1 million shares of GameStop. The purchase was disclosed in a Jan. 21 SEC filing. In that filing, Ryan said it is “essential” for a public company CEO to buy shares with personal funds to strengthen alignment with stockholders.
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