The recent revival in meme stocks, evident in today’s 25% surge in Krispy Kreme, could reflect both a targeting of investors betting against the bull market and the impact of passive investment strategies that have sapped liquidity and stoked volatility.

Krispy Kreme and GoPro were among the companies riding the latest meme stock rally on Wednesday, as retail traders latched on to the highly shorted names a day after piling into the shares of department store company Kohl's.

Small investors piled into Kohl's Tuesday and sent shares flying upwards as the department store retailer became the latest business caught up in a stock market frenzy.