How to Trade GameStop Corp. (GME) on Hyperliquid

What Is GameStop

GameStop Corp. (GME) started as a brick-and-mortar video game retailer — the kind of store you walked into to trade in used PlayStation discs. The legacy business still exists, operating roughly 4,000 stores across the U.S. and internationally, but the stock's identity has long since detached from its retail operations.

The real story begins in January 2021, when a coordinated wave of retail traders on Reddit's r/WallStreetBets drove GME from under $20 to nearly $500 in days, inflicting billions in losses on short sellers and turning GameStop into the defining symbol of the meme stock era. That event permanently rewired GME's investor base: the stock now trades more on sentiment, social media momentum, and short interest dynamics than on quarterly earnings.

Since then, CEO Ryan Cohen — who took control via activist investing in 2021 — has reshaped the company. He slashed SG&A expenses 44% from $1.7 billion to $951 million, swung the P&L from a $381 million net loss to $422 million in trailing net income, and built an extraordinary cash pile. As of Q3 fiscal 2026, GameStop holds $8.83 billion in cash and investments — roughly 86% of its entire $10.69 billion market cap. The company is essentially a war chest with a retail business attached.

Why GME Matters Right Now

Three catalysts keep GME in the crosshairs heading into late March 2026.

The $100 billion moonshot. Cohen's board granted him a performance-based stock option award covering 171.5 million shares at a $20.66 strike. It pays zero unless GameStop hits a $100 billion market cap and $10 billion in cumulative EBITDA — a nearly 10x jump from current levels. To get there, Cohen has publicly stated he plans to acquire a "very, very, very big" publicly traded consumer company. He called the bet "either genius or totally, totally foolish." He also put $21.4 million of his own money into back-to-back open market purchases at an average of $21.36/share, and Director Alain Attal added 12,000 shares.

Short interest stays elevated. As of December 31, 2025, 65.8 million shares remain sold short — about 14.7% of shares outstanding with 13 days to cover. That's enough to fuel squeeze mechanics on any positive catalyst, especially around earnings or acquisition news.

The Bitcoin pivot (and possible exit). GameStop bought 4,710 BTC in May 2025 for roughly $500 million, then moved the entire stash to Coinbase Prime in January 2026. Cohen subsequently called his acquisition target "way more compelling than bitcoin," suggesting the BTC may be liquidated to fund the deal. Whether that's bullish or bearish depends on your view of the acquisition thesis.

The HIP-3 Perpetual

On Hyperliquid, GME trades as a HIP-3 perpetual futures contract. Each contract tracks the value of one share of GameStop common stock, priced via oracle feeds that reference the NYSE-listed equity.

Key mechanics for the GME perp:

• Leverage: Up to 10x, which is meaningful on a stock that already moves 5-10% on meme catalysts alone.
• Funding rates: Like all perps, longs and shorts exchange periodic funding payments based on the premium or discount to spot. GME's funding can spike during retail-driven rallies when long-side demand overwhelms shorts.
• 24/7 access: Unlike NYSE-listed GME, the perp trades around the clock. This matters for a stock that frequently gaps on after-hours news — think earnings releases, Cohen tweets, or acquisition rumors. Perp traders can position or exit without waiting for the opening bell.
• No stock borrowing costs: Shorting GME on traditional markets means paying a borrow fee, which can spike during high demand. The perp lets you go short with no borrow premium beyond funding.

The current price sits around $24.20 with essentially zero 24-hour volume, meaning this is a freshly listed market. Early entrants should expect wider spreads and thinner books until liquidity builds.

Key Trading Considerations

Earnings on March 24. GameStop reports Q4 and full fiscal year 2025 results on March 24, 2026. Given the company's $8.83 billion cash position, the numbers themselves matter less than any forward guidance on the acquisition strategy. A concrete target or timeline could send GME violently in either direction.

Acquisition risk is binary. Cohen's plan to buy a massive public company is either transformative or destructive — there is no middle ground. If the market likes the target, GME re-rates higher instantly. If it doesn't, the premium evaporates. Trading the perp around acquisition headlines requires tight risk management and conviction.

Dilution overhang. GameStop has repeatedly tapped equity markets — multiple at-the-market offerings have already expanded the share count substantially. Cohen's 171.5 million share option award adds further potential dilution. The $32 warrant strike is another level to watch.

Meme dynamics cut both ways. GME's retail following means it can decouple from fundamentals for extended periods. Social media sentiment can create rapid, violent moves that blow through stop losses. On the perp, 10x leverage on a meme stock amplifies both opportunity and risk substantially. Size positions accordingly.

Trading on Hyperliquid

Trade GME on Hyperliquid with up to 10x leverage.