Redbox (RDBX) Stock Drops 30% as Short Squeeze Hype Cools The short squeeze hype surrounding Redbox (NASDAQ: RDBX ) may have been short-lived. The company, known for its DVD rental kiosks, enjoyed a rally yesterday as high short interest pushed RDBX stock up. But as quickly as shares rose, they began to fall again. Now that Monday’s rally has cooled, RDBX is back to trading at its normal levels — which are not very high. What’s Happening With RDBX Stock Yesterday, as bearish energy engulfed Wall Street, RDBX stock rose steadily through the chaos. Shares spiked more than 30% as high short interest collided with the heavy trading volume generated by retail investor activity. But as InvestorPlace writer William White noted, when a company joins the ranks of the meme stocks, it is subject to extreme volatility . And that is exactly what we are seeing from Redbox. RDBX stock has been falling since markets opened today. While it has rallied slightly, it remains in the red by more than 35% as of this writing. The Next Meme Stock to Watch? Redbox’s recent activity is completely in keeping with that of previous meme stocks such as Gamestop (NYSE: GME ) and AMC Entertainment (NYSE: AMC ).