GameStop (NYSE:GME) dropped 22% on March 27 after revealing plans to invest in Bitcoin (BTC-USD), triggering a surge in short selling and activating a short sale restriction on the New York Stock Exchange.

The stock had briefly risen 12% after the announcement but reversed course as short volume jumped 234%, totaling nearly 31 million sharesits second-largest one-day spike, according to TradingView.

• Warning! GuruFocus has detected 4 Warning Sign with GME.

The drop triggered the restriction rule after shares fell more than 10% from the prior close. Kevin Malone, CEO of Malone Wealth, claimed on X that trading volumes pointed to possible naked short selling.

GameStop also announced a $1.3 billion convertible notes offering, drawing analyst pushback. Tom Sosnoff, CEO of Tastylive, said the move looked like a fallback after failing to find better investments.

The Bitcoin move drew comparisons to Strategy’s (NASDAQ:MSTR) 2021 play. But analysts said GameStop’s struggling business makes it a riskier bet. Wedbush’s Michael Pachter questioned why investors would pay double the company’s cash just for crypto exposure.

The reaction highlights investor doubts about GameStop’s direction in the digital asset space.

This article first appeared on GuruFocus.