Metaplanet Inc., a leading Bitcoin treasury company in Asia, has become Japan’s most shorted stock, drawing attention to a brewing financial drama. With over 25% of its shares borrowed for short positions, the company is on the verge of a potential GameStop-style short squeeze driven by Bitcoin, according to some crypto community members. This surge comes as Metaplanet has seen record growth fueled by its aggressive Bitcoin strategy. The firm’s Q1 revenue reached ¥877 million ($6M), with nearly 88% attributed to Bitcoin investments. Metaplanet’s holdings have also quadrupled since January, culminating in a recent purchase of 1,004 BTC worth over $104 million for their growing Bitcoin reserve, now valued at over $800 million. This move has attracted both bullish and bearish attention, prompting short interest against the company’s stock on the Tokyo Stock Exchange. Short sellers have been aggressively betting against Metaplanet’s success, leading to a 12.84% drop in share price over seven days before halting at ¥933 on May 21 due to circuit breakers. The halted trading has left short sellers unable to exit their positions, potentially setting the stage for a slow-motion squeeze as retail and institutional investors fuel a potential reversal of this trend. Metaplanet is now drawing comparisons to the GameStop rally of 2021, where communities rallied behind underperforming stocks. This time around, however, Bitcoin’s fundamental strength is fueling the movement, positioning Metaplanet as a unique case for crypto hedge-fund plays. Analysts and community members see this as an opportunity to capitalize on a profitable short squeeze, especially given the firm’s strategy of leveraging put-selling strategies on Bitcoin futures. This allows them to potentially acquire BTC at lower prices or generate income while making additional investments in Bitcoin. The potential for further market volatility is high, with traders bracing for a sharp price increase once trading resumes following the halt. If retail investors join the rally, it may lead to even more intense short squeezing activity and drive prices up significantly.