Shares of Opendoor Technologies Inc (OPEN) surged 7.27% on Thursday, continuing a remarkable rally that has seen the stock more than double in value over the past week. The dramatic rise is largely attributed to a resurgence of meme stock mania, with retail investors on social media platforms driving intense speculation and trading activity.

The online real estate platform has become the latest target of retail traders, reminiscent of the GameStop saga in 2021. According to Tom Bruni, editor-in-chief at Stocktwits, interest in Opendoor on the social platform increased fourfold between Monday and Tuesday. The stock's popularity on Reddit's WallStreetBets forum has also skyrocketed, with some investors drawing comparisons to Carvana's recent turnaround story.

Adding fuel to the rally is a potential short squeeze, as over 25% of Opendoor's float was sold short by the end of June. The high short interest, combined with increased retail attention, has led to record-breaking trading volumes. On Wednesday alone, more than 560,000 bullish option contracts changed hands, further propelling the stock's ascent. However, analysts caution that the fundamentals of the company remain challenging, with Opendoor facing financial difficulties and a sluggish housing market. As the stock experiences extreme volatility, investors are advised to approach with caution, recognizing the speculative nature of the current rally.