It's been game on for the most heavily shorted S&P 500 stock.
"People really hate it," commented analyst Michael Pachter, who covers the video game sector for Wedbush Securities. "People are convinced that physical sales [of video games] are going away and digital sales will overwhelm them and they won't ever sell a game again—and so far, that view is wrong."
Indeed, the extremely bearish market sentiment around the stock may make it easy for GameStop to keep rising.
After GameStop handily beat earnings estimates in May, Janney Capital Markets analyst Tony Wible wrote in a research note: "These results will be more than enough to support GME's stock in the face of massive pessimism."
GameStop isn't the only heavily shorted stock that's done well this year. Among the three most heavily shorted, Transocean and Cablevision Systems have also beaten the market this year, with 4.3 percent and 15.2 percent rallies, respectively.