GameStop's shares skyrocketed on Tuesday, continuing the electrifying meme stock surge ignited by "Roaring Kitty" after three years of silence! . Trading a whopping 70% higher before pausing, GameStop's meteoric rise followed a staggering 74% leap on Monday.

But that's not all! AMC, the beloved movie theater chain, soared an incredible 90%, despite securing $250 million in fresh equity capital just the day before.

And it's not just GameStop and AMC catching fire! Other meme stocks blazed into the spotlight too! BlackBerry, once a titan in smartphones, saw a 17% jump, while Koss, the headphones maestro, surged an eye-popping 40%! 🔥

The resurgence of meme stock mania can be traced back to a recent social media post by Roaring Kitty, also known as Keith Gill. With his first post since 2021, Gill's gaming meme lit the internet on fire, racking up a staggering 23 million views!

"Retail investors are back in the game, ready to embrace risk," noted Neil Wilson, chief market analyst at Finalto. Yet, amidst the frenzy, it's essential to note that this surge lacks a fundamental basis. GameStop's recent earnings report left much to be desired, with a notable decline in revenue and job cuts reported. 

With e-commerce rivals on the rise, GameStop faces a challenging landscape. However, for now, the meme stock phenomenon has injected a surge of excitement back into the market! 

 Echoes of 2021's Epic Saga Unveiled! 

Keith Gill, the former marketer for Massachusetts Mutual Life Insurance, also known as DeepF------Value on Reddit, spearheaded a legion of day traders in a crusade to elevate the fortunes of overlooked companies, notably GameStop.  Between 2020 and 2021, they rallied behind the brick-and-mortar video game stock, pushing its shares and call options skyward, aiming to squeeze hedge funds betting on their downfall.

Despite GameStop hitting an all-time high of $120.75 in January 2021, the rally eventually waned, sending its shares, along with other meme stocks, into a downward spiral. Recently, GameStop stooped to a three-year low of $9.95 before Monday's resurgence, closing at $30.45. 

Ortex Technologies reports staggering losses for GameStop's short sellers, totaling $868 million by Monday's end and ballooning to $1.26 billion for May. With shares rocketing to $46 early Tuesday, short sellers faced a jaw-dropping $1.04 billion hit, tallying losses exceeding $2.3 billion for May.

"The situation undeniably mirrors the events of January 2021," declared an Ortex Technologies spokesperson to CNBC via email. With short interest nearing 25% of the free float, reminiscent of 2022's peak, and a remarkable 150% surge in just two days, the echoes of the past reverberate. 

 "With no signs of short position holders closing their positions, tracking short interest levels becomes paramount," they emphasized. In this dynamic market, such metrics signal when short sellers may unleash additional buying pressure, altering the stock's trajectory.

Short selling, a strategy of borrowing shares in anticipation of their market value dropping, adds another layer of complexity to this gripping financial tale.