Shares of Hyperliquid Strategies Inc. (PURR) surged Monday as a rally in the Hyperliquid ecosystem and chatter about a potential gamma squeeze converged to create a perfect storm for the stock.

The primary catalyst was the strong performance of HYPE, the native token of the Hyperliquid blockchain. HYPE jumped 12.23% over the past 24 hours to trade at $67.68, outpacing gains in Bitcoin (BTC) over the same period. Hyperliquid Strategies operates as a corporate treasury vehicle tied to the Hyperliquid ecosystem, making it one of the few ways for investors to get equity-market exposure to HYPE through a regulated public company. The company aims to generate shareholder value by staking tokens, running yield-generating strategies, and actively participating in the Hyperliquid network.

But the rally wasn't just about the token. Investor enthusiasm got an extra jolt from a recent report by financial research newsletter Capital Flows, which identified PURR as a leading candidate for a potential GameStop-style gamma squeeze. The report highlighted the stock's relatively small public float, heavy trading activity, and active options market as ingredients that could set off a feedback loop. A gamma squeeze happens when aggressive buying of short-dated call options forces market makers to buy the underlying stock to hedge their positions, which then pushes the stock higher and can attract even more options buying.

There's also a structural catalyst on the horizon: Hyperliquid Strategies is scheduled to join the Russell 2000 and Russell 3000 indexes on June 29. That index inclusion could drive additional demand from passive funds and institutional investors who track those benchmarks.

At the time of publication Monday, Hyperliquid Strategies shares were up 9.77% at $9.55.