Kohl's Corporation (KSS) stock experienced a dramatic 17.07% surge on Wednesday, as the department store chain became the latest target in a resurgence of meme stock mania. The sudden upswing follows a volatile week of trading, highlighting the power of retail investors and social media in driving stock movements.

The rally in Kohl's shares appears to be fueled by several factors. First and foremost is the high short interest in the stock, with nearly 50% of its float sold short according to recent data. This substantial bearish positioning has made Kohl's an attractive target for retail traders looking to initiate a short squeeze, a scenario where short-sellers are forced to buy back shares to cover their positions, further driving up the price.

Social media platforms, particularly Reddit's WallStreetBets forum, have played a crucial role in orchestrating this movement. Traders on these platforms have been actively discussing Kohl's and other potential meme stocks, sharing strategies and encouraging others to join the buying frenzy. The stock's low price and well-known brand name have also contributed to its appeal among retail investors.

However, it's important to note that this surge comes amid ongoing challenges for Kohl's business. The company has struggled with declining revenues in recent years as consumers shift towards online shopping. Despite these fundamentals, the stock's movement appears to be driven more by speculative trading than by any significant change in the company's prospects.

Investors should be aware that such rapid price movements can be extremely volatile. In fact, Kohl's stock experienced significant fluctuations throughout the week, with gains of nearly 38% on Tuesday followed by losses of about 16% earlier on Wednesday before the latest surge. This volatility underscores the high-risk nature of meme stock investing and the potential for quick reversals.