According to data source ORTEX, short-sellers in GameStop and AMC have suffered $930 million on their holdings in the previous five days.

Short holdings in the equities remain substantial, with AMC accounting for 18.3 % of the free float and GameStop contributing 21.8 %.

According to ORTEX's co-founder, the short-seller squeeze is "just what the Reddit army is looking for".

ORTEX data reveal that investors who gambled against GameStop and AMC Entertainment shares have lost approximately $1 billion in the previous five trading days.

Short sellers in GameStop and AMC lost $930 million on their holdings during the last five days of trading as per the data, since both companies recovered. AMC shorts lost $210 million on Monday only, while GameStop shorts lost $227 million.

ORTEX co-founder Peter Hillerberg informed Insider in an email that short holdings in the equities remain strong, resulting in "huge losses" for anybody with a short position. As per ORTEX, AMC short interest is 18.3 % of free float, while GameStop short interest is 21.8 %.

"The significant price gain may drive short position owners to try to settle their positions by purchasing back the shares, producing extra demand, which may drive the share price to rise even more," Hillerberg added.

"That's what the 'Reddit army' is aiming for," he remarked.

According to Investing.com statistics, both firms' shares declined on Tuesday.

Before that, AMC had been on a multi-day surge after Redditors on Wall Street Bets and other subreddit groups advocated for a short squeeze in the meme stock. On Monday, the hashtag #SqueezeAMC began trending on Twitter.  This tendency, as per Hillerberg, implies that "this is a substantial and highly loud population."

At an earnings conference earlier this month, Adam Aron, CEO of AMC, the world's largest movie chain operator, praised Reddit and Robinhood traders for helping to boost the stock. Shares have risen about 500% so far this year.

The prevalent habit of meme stocks originated with GameStop. In January, an army of Reddit day traders drove the stock up from single digits to triple digits in an attempt to pressure short sellers.

On May 11, shares fell to their lowest level in a month, plunging to $136.50, and have since rebounded, trading at approximately $175 on Tuesday.

In the previous week, the firm alluded to Redditors in a later-deleted post where an astronaut sat on the moon, a probable allusion to a famous Reddit expression about the stock price rising "to the moon."

Short sellers at GameStop reportedly had lost billions of dollars this year as the stock has risen, causing some to minimize their losses and leave their holdings.

During the months-long dispute, GameStop's management has been shaken up, with activist investor Ryan Cohen entering the board and CEO George Sherman confirming his resignation. The company's balance sheet has also been bolstered by the removal of $216 million in debt.