NeoVolta Soars 18.89% as Retail Investors Target High Short Interest Stocks

On July 23, 2025, NeoVolta surged by 18.89% in pre-market trading, marking a significant rise that has caught the attention of investors and analysts alike.

Retail investors have been actively targeting small-cap stocks with high short interest, reminiscent of the 2021 "meme stock" frenzy. This renewed interest has led to a surge in call option trading, with the ratio in the U.S. stock options market reaching 70%, the highest level since the "epic retail short squeeze" event of 2021. NeoVolta, with a short interest of 81.22%, is among the top targets for these retail-driven short squeezes.

Social media platforms, particularly Reddit's WallStreetBets forum, have become hubs for retail investors to coordinate their trading strategies. Posts encouraging the purchase of highly shorted stocks are prevalent, with users expressing their desire to inflict maximum pain on short sellers. However, analysts have issued warnings about the potential risks associated with this speculative behavior, noting that the current market sentiment is bordering on irrational exuberance.

Despite the warnings, the "meme stock" phenomenon shows no signs of abating, with retail investors continuing to drive up the prices of highly shorted stocks. The renewed focus on these stocks has led to speculation about whether the market is on the brink of another "meme stock" phenomenon, similar to the GameStop and AMC Entertainment Holdings Inc. frenzy of 2021. The surge in call option trading and the renewed interest in highly shorted stocks have raised questions about the role of retail investors in the market and their ability to influence stock prices.