Investment research publication Capital Flows has predicted a GameStop-style gamma squeeze for Hyperliquid Strategies Inc. (PURR) within the next 60 trading days, while disclosing it is the analyst’s largest personal position.
Capital Flows cited credit-cycle liquidity, the stock’s small tradable float, and a wave of call buying as key factors behind a “very high probability” of a gamma squeeze developing in PURR.
The analyst noted that PURR carries a market cap of approximately $1.4 billion and a small tradable float, mirroring the valuation GameStop held before its historic 2021 short squeeze.
Capital Flows reported that PURR recently recorded its largest single day of trading volume on record, with implied volatility rising alongside price, a pattern the analyst interpreted as heavy call demand.
The analyst argued that listed options strikes are currently capped at $18, meaning if the stock rises and higher strikes are listed, market makers would be forced to buy shares to hedge, potentially fueling a self-reinforcing upward move.
Capital Flows identified two specific catalysts, including PURR’s scheduled addition to the Russell 2000 and Russell 3000 indexes, effective after the US market close on June 26, and the potential inclusion of Hyperliquid in the United States.
On X, the analyst stated, “PURR just had its largest day of trading volume, indicating how aggressively investors are establishing positions into the regulatory change for Hyperliquid.”
The analyst also cautioned, “There is a massive problem with the calls right now, though. The strikes aren’t listed very high,” adding that rising implied volatility alongside a rallying stock reflects the market beginning to recognize PURR leadership’s value over any ETF.
PURR shares closed up over 16% on Friday, and the stock was among the top trending tickers on Stocktwits, where retail sentiment remained in the “extremely bullish” zone with chatter at “extremely high” levels.
Hyperliquid Strategies holds approximately 20 million Hyperliquid (HYPE) tokens, and HYPE reached an all-time high on Sunday, marking the fourth record high the token achieved within a single week.
HYPE was also among the top trending tokens on Stocktwits, with retail sentiment holding in the “extremely bullish” zone and community chatter sustaining “extremely high” levels over the prior 24 hours.
Capital Flows noted the broader context of a credit-cycle “everything rally” pushing capital into higher-beta assets, though the publication acknowledged that gamma-squeeze setups involving low float and concentrated call buying are highly speculative and can reverse sharply.
