Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today

The GameStop (NYSE: GME) share price has been jawdropping! But now another GME on the ASX might be experiencing mistaken identity.

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ASX share price on watch represented by surprised man with binoculars

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Over the last week, the world has watched on in astonishment as the Reddit crew on WallStreetBets coordinate an almighty short squeeze on GameStop Corp (NYSE: GME).

The share price for GameStop has skyrocketed 790% in the last week alone. Now ASX-listed GME Resources Ltd (ASX: GME) has surged 28% on no news – Did someone get the wrong GME?

GameStop share price, mob mentality

The massive rally in GameStop comes after the future of the bricks and mortar gaming retailer looked shaky. Short positions (a way of profiting on price decrease) grew, as fund managers looked to capitalise on a collapse – then the antics of WallStreetBets stepped in.

One user devised that if investors bought and held, shorters would be forced to keep bidding higher to exit their increasingly losing short positions. The result, insane share price increases in an otherwise unextraordinary company.

This dramatic rise was only exacerbated when Tesla Inc (NASDAQ: TSLA) founder, Elon Musk, tweeted out about GameStop.

The world's richest person was then joined by venture capital titan, Chamath Palihapitiya. Chamath also tweeted that he was jumping in on the rise:

Lots of $GME talk soooooo….

We bought Feb $115 calls on $GME this morning.

Let's gooooooo!!!!!!!!

GME on the ASX

So now we are potentially experiencing this hype on the ASX, with GME Resources. A case of mistaken identity hasn't been uncommon recently. A US-listed company recently pumped more than 6000% after Elon Musk tweeted about the Signal messaging app, with no ties between the two.

GME Resources has no news out today, so it's possible that this price increase is indeed another mishap.

Obviously, there aren't any similarities between the 2 GMEs. One is a games retailer, the other is a minerals exploration company in Western Australia.

GME share price performance

With today's price jump, the GME Resources share price is up 70% in the last 12 months. The company's market capitalisation now resides around $40 million. If you were interested, GME Resource's new long lost cousin, GameStop, has a market cap of $25 billion.

Mitchell Lawler owns shares of Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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