Tiffany Hagler-Geard | Bloomberg | Getty Images

GameStop shares fell 1.3% in premarket trading on Wednesday as traders waited to see if the short squeeze fueled by retail investors on Reddit could be revived.

The stock was down more than 11% on Wednesday morning but was in the black just after 5 a.m. It was down three hours later, trading at $ 88.96.

The stationary video game retailer’s shares rose 1,625% in January and only rose 400% last week when traders, led by Reddit thread WallStreetBets, piled into the stock.

But the momentum collapsed earlier this week. Gamestop stock fell 60% on Tuesday and has lost more than 70% of its value since Friday.

Keith Gill, DeepF —— Value of AKA Reddit, announced Tuesday that despite a loss of $ 13 million that day, it still hasn’t sold.

AMC Entertainment, another sharply shortened stock that Reddit traders were also targeting, gained 3% in premarket trading.

Robinhood and other retail apps continue to restrict purchases of a collection of stocks tracked by the Reddit thread. Many Wall Street hedge funds began short covering late last week after suffering significant losses.

Short selling is a strategy in which investors borrow shares of a stock at a certain price, with the expectation that the market value will drop below that level when it is time to pay for the borrowed shares.