( This story was updated with a comment from research firm Muddy Waters, whose principals are short the stock.)BOSTON ( TheStreet) -- Orient Paper ( ONP) shares surged Friday despite another bearish research note released by Muddy Waters Research, a firm that has a short position in the Chinese paper company's shares. Orient Paper shares were climbing by 57 cents, or 12.8%, to $5.03 after hitting an intraday high of $5.63 earlier Friday. Traders posting on Internet message boards and Twitter attributed the spike in Orient Paper's share price to a short squeeze. More than 1.44 million shares of Orient Paper changed hands by 12:30 p.m. ET Friday, compared to the average daily share volume of 643,000. The rally comes one day after Muddy Waters Research continued the war of words with the Chinese company by posting a research report that once again claims Orient Paper engaged in fraudulent activity. Muddy Waters' research note Thursday cites an article by Chinese publication 21st Century Business Herald, which investigated many of Muddy Waters' claims that lead the firm to conclude Orient Paper is committing fraud.
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