Wendy's (WEN) shares extended their volatile rally for a second consecutive day on Thursday, climbing another 12% in premarket trading.

The move pushes the fast-food chain's stock up nearly 30% over the two-session period, marking a sharp deviation from recent price action.

The surge appears largely disconnected from company fundamentals.

Instead, the price action is being driven by a coordinated buying campaign from retail investors, primarily organized through the social media platform Reddit.

This dynamic has transformed the stock into a new "meme" darling, with retail traders piling into the heavily shorted name.

The mechanics of the rally resemble a classic short squeeze.