Nearly 50% short interest and viral Reddit posts triggered massive trading volume and a temporary halt in shares.
Sectors & Industries
July 23, 2025
Table of Contents
Kohl’s Corporation (KSS) became the latest target of retail trading frenzy on July 22, 2025, as its stock price soared 37% in a single day—despite no news from the company, no upgrades from analysts, and no improvements in its struggling business. The sudden rally bore all the hallmarks of a classic meme stock squeeze, driven by chatter on Reddit and other social platforms where traders coordinated a speculative push.
At one point during the trading session, shares more than doubled from Monday’s close of $10.42, hitting an intraday high of $21.23, before being temporarily halted due to volatility. By the close, Kohl’s had settled at $14.27, still up significantly, marking its largest one-day percentage gain in years.
While the rally lacked any traditional catalyst, the ingredients for a meme-stock explosion were firmly in place:
Much of the trading volume was driven by retail investors active on Reddit’s r/WallStreetBets, where posts highlighted Kohl’s as a high-potential short squeeze play. The subreddit, known for launching the GameStop ($GME) and AMC ($AMC) surges in 2021, once again served as a staging ground for retail traders seeking to punish short sellers and profit from momentum.
Kohl’s became a trending ticker across multiple retail platforms, including Stocktwits, signaling a groundswell of grassroots attention. Traders cited Kohl’s brand recognition, high short interest, and depressed stock price as key reasons to initiate a squeeze.
Nearly 50% of Kohl’s outstanding float was sold short, according to data from FactSet and LSEG. That means for every two available shares, one was borrowed and sold by investors betting the stock would go down. This made Kohl’s one of the most heavily shorted U.S. stocks—prime fuel for a short squeeze.
As the stock price climbed, traders holding short positions were forced to buy back shares to cover their losses, accelerating the upward momentum.
By mid-afternoon, over 183 million shares of KSS had been traded—25 times its 25-day moving average volume. In the options market, volume exploded to 360,000 contracts, about 12 times normal levels, with the most popular contracts betting the stock would rise above $17.50 by the end of the week.
This unprecedented activity pushed Kohl’s into the ranks of the day’s most traded stocks, alongside mega-cap names like Nvidia and Tesla.
Kohl’s rally mirrors the retail-fueled surges seen in GameStop, AMC, and Bed Bath & Beyond—legacy brands that became symbolic battlegrounds between retail traders and institutional short sellers.
Despite the stock’s massive one-day jump, Kohl’s continues to face steep operational challenges:
Analysts remain skeptical. Goldman Sachs reiterated its “Sell” rating on the stock with a $7 price target, calling the rally “disconnected from reality.”
The Kohl’s spike isn’t an isolated incident. Retail enthusiasm has been bubbling back up in 2025 as U.S. markets rebound from an April slump caused by trade tensions and tariff concerns. Many traders, flush with savings or trading profits, are returning to meme-style plays.
Earlier this week, another highly shorted name, Opendoor Technologies (OPEN), gained over 300% in just six sessions, further proving that meme stock dynamics are alive and well.
“This kind of crazy group move just exemplifies what’s happening with the retail investor—they’re hopping on momentum stocks and hoping to make money,” said Neil Saunders of GlobalData.
Kohl’s July 22 rally was not about fundamentals—it was about speculation, short interest, and viral momentum. While some traders made quick profits, others could be left holding the bag if the stock returns to its prior downward trajectory. The company remains burdened by declining sales, interim leadership, and macroeconomic headwinds.
Yet for many Reddit traders, the narrative alone was enough to trigger action.
The mechanics behind meme stocks are nothing new, but what is changing is how investors spot these setups. In the "Band of Traders - Together We Trade" podcast, Andrew Einhorn, CEO of LevelFields AI, detailed how his company’s platform picked up on GameStop’s potential months before its historic short squeeze.
In September 2020—long before GameStop became a household name—LevelFields AI detected an activist investor taking a significant stake in the company. While the AI didn’t “predict” the 70X price explosion, it did alert users to a bullish catalyst that doubled the stock from $5 to $10 within a month. Those who acted on the signal unknowingly positioned themselves for the coming frenzy.
“Our AI system constantly analyzes the market for patterns that historically lead to substantial price movements,” Einhorn explained. “In GameStop’s case, it was an activist investor acquiring a noteworthy position—an event our platform flagged as an opportunity.”
LevelFields AI specializes in identifying such events: earnings surprises, regulatory changes, and key stakeholder actions like activist investments. These signals often precede sharp price moves—even meme stock explosions.
Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.
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