Metaplanet, a relatively under-the-radar Japanese firm just a few months ago, is now at the center of an intense financial storm—drawing comparisons to the infamous GameStop saga of 2021. After logging eye-popping gains and diving deep into Bitcoin investments, the company has unexpectedly become the most shorted stock in Japan. And some analysts believe a dramatic short squeeze could be just around the corner.
Bitcoin Bets and Soaring Stock Prices
Listed on the Tokyo Stock Exchange under ticker 3350, Metaplanet has been making waves with its aggressive accumulation of Bitcoin. This bold crypto-centric strategy has driven its stock to new heights. Over the last month alone, Metaplanet’s stock surged 163%, with a staggering 57% gain just in the past week—climbing to a yearly peak of 933 JPY.
On May 20, the trading action surrounding Metaplanet was nothing short of explosive. In the U.S. OTC markets, more than 21 million shares of $MTPLF changed hands, totaling a jaw-dropping $150 million in trading volume. Meanwhile, German markets saw over 2.5 million shares of the company’s DN3 ticker traded, generating nearly €15.4 million in volume.
The volume spike has raised eyebrows among market watchers—and alarm bells for hedge funds. Despite the rally, short interest in Metaplanet has ballooned, making it Japan’s most heavily shorted stock. This has led many in the crypto world to draw comparisons to GameStop’s short squeeze of 2021, where retail investors sent the stock soaring and left hedge funds scrambling for cover.
Metaplanet CEO Claps Back at Short Sellers
Simon Gerovich, Metaplanet’s CEO, has been vocal in his response to the surge in short positions. “Apparently Metaplanet is the most shorted stock in Japan. Do they really think betting against Bitcoin is a winning strategy?” he remarked, openly challenging hedge funds that are wagering against the company’s Bitcoin-fueled vision.
Bitcoin strategist Dylan LeClair echoed this sentiment, highlighting the stock’s global trading frenzy and unprecedented investor interest.
Analysts See a Brewing Squeeze
Industry experts are beginning to question the logic behind the short bets. BlockStream CEO Adam Back weighed in, stating that based on historical net asset value (mNAV) metrics and the time it would take to cover current short positions, Metaplanet remains significantly undervalued. “Shorting it seems like a really bad idea to me,” he warned.
In fact, the stock has now triggered Tokyo Stock Exchange circuit breakers for two consecutive trading sessions—both times within minutes of the market opening. Investor Brian Brookshire even joked about the potential for a “slow-motion short squeeze,” predicting another limit-up day ahead. “If $MTPLF is any indication, 3350 will hit limit-up again tomorrow as well,” he said.
Is This 2025’s GME Moment?
The comparisons to GameStop (GME) in 2021 aren’t just hype. Back then, GME became the poster child for retail-led market disruption, rallying over 3,200% and delivering a painful lesson to hedge funds who were caught off guard. Just like GME, Metaplanet is a relatively illiquid stock—meaning that any panic among short sellers could trigger a cascading upward price surge.
But unlike GameStop, Metaplanet’s surge isn’t being driven by nostalgia or online forums—it’s rooted in a calculated bet on Bitcoin. With institutional interest in BTC continuing to rise and prices edging toward new all-time highs, Metaplanet’s strategy is looking increasingly savvy. If Bitcoin’s bullish trajectory continues, hedge funds shorting Metaplanet might find themselves on the wrong side of the trade yet again.
Final Thoughts
Metaplanet’s journey from quiet Japanese firm to a hot-button topic in global financial circles is a testament to the unpredictable fusion of crypto and equities. While it’s still too early to say whether we’re witnessing a full-scale short squeeze, the warning signs are flashing. The combination of high short interest, limited liquidity, and Bitcoin exposure creates the perfect storm.
If history repeats itself, hedge funds may soon regret underestimating the power of Bitcoin—and Metaplanet’s conviction in it.
