Monday's astonishing surge in GameStop's stock led to nearly $1 billion in losses for short sellers, as reported by data from S3 Partners.

GameStop's 74% surge led to short-selling hedge funds losing $838 million, according to data from S3 Partners.

Ihor Dusaniwsky, S3's managing director of predictive analytics, anticipates short covering in this stock due to its pre-existing 100/100 squeeze score.

The stock's rapid surge appears to have been sparked by "Roaring Kitty," known for rallying day traders to invest in the gaming stock in 2021, a historic event on Wall Street.

According to S3, short sellers in GameStop have incurred $1.24 billion in losses in May, including Monday's downturn.

Monday saw not only GameStop but also other meme stocks on the rise: AMC surged by 15%, while Reddit traded 9% higher.