Attention traders, there’s a new meme stock in town! Revlon, the struggling makeup and cosmetics company that filed for bankruptcy last week, is the latest hyped stock on Reddit. Over 183 million shares were traded within the past three days. That’s more than 31 times the average volume over the past three months. Revlon was among the top 10 traded assets on Fidelity Tuesday. As of Wednesday June 22, the stock is now up more than 400% in just the past three sessions after falling 13% on June 15th, the day the company announced its Chapter 11 reorganization plan. 

In a maneuver reminiscent of other meme surges of heavily shorted debt-laden bankrupt companies such as GameStop, AMC, and Hertz,  Revlon's stock is surging. Individual investors are turning their attention to the stock in hopes of a quick profit while ignoring the fact that this company is literally bankrupt. 

When a company declares bankruptcy, most investors typically don't get anything from the ensuing reorganization, in which case, creditors are often first in line to get back some of their money. The old stock will be completely worthless and only the reorganized company’s new shares will have any value

On Friday, Revlon got the approval of a US bankruptcy judge to tap $375 million of new financing on an interim basis. The company will seek permission to borrow more money at a later hearing.

Investors should understand that buying common stock of companies in Chapter 11 bankruptcy is extremely risky and can lead to financial loss,” according to the Financial Industry Regulatory Authority.