Jim Cramer, known for his show "Mad Money" on CNBC along with other appearances on the network, has a message for those betting against Kohl's Corp. — get out now while you still can.

Cramer, a former hedge fund managers, closed his show on July 22 speaking about the Kohl's stock surge.

"Kohl's didn't shoot up nearly 38% today because of its deal with Sephora; it wasn't about its relationship with Amazon either... and it certainly wasn't Kohl's cash or some of its store brands even as I begrudgingly admit that I like them," Cramer said. "No. It was all about the short position."

Of the available Kohl's shares to be traded, nearly 50% of those shares are short positions, meaning firms are betting against the company and will make money when the stock goes down. If the stock goes up, the firms with shorts against Kohl's need to pay money to keep their position.

"Whenever you have such a huge short position it's easy for buyers to get together and orchestrate a shore squeeze," Cramer said. "To which I say, what the heck do the shorts ... think they're doing here."

Cramer said Kohl's balance sheet "isn't all that bad" and shouldn't be shorted as much as it is calling the shorts "moronic."

"Kohl's might not be great, but it isn't terrible either," Cramer said. "For the hedge funds it's almost as dumb as shorting GameStop in 2021."

GameStop's stock over Wall Street as a seemingly failing retailer had its stock price grow from $2 and $3 to more than $80 when people on forums like Wall Street Bets on Reddit started buying the stock in 2021. The stock increase caused trading to stop on the platform Robinhood and a massive controversy. Several hedge funds recorded massive losses because of the trade, including Melvin Capital which lost billions of dollars, leading to its closure.

More: Kohl's stock price falls a day after online trader-fueled 'meme' craze sent shares soaring

Cramer theorized that Kohl's is in a similar situation as GameStop. Not because of its retail performance but because of the giant short position against the company.

"Kohl's was a textbook example of a stock that had become perfect for the GameStop playbook," Cramer said adding the firms with short positions should have cashed out when the stock was around $6. "The shorts have made a killing over the past couple of years on this one... the shorts have clearly overstepped their boundary with Kohl's. They've run into a buzzsaw of their own creation. Even now I think they'd be wise to cover their short and move on before they have another GameStop on their hands."

Cramer ended his show by issuing some advice to the hedge funds shorting Kohl's:

"Cover and move on."

This article originally appeared on Milwaukee Journal Sentinel: CNBC's Jim Cramer thinks Kohl's Corp. could be another GameStop