It's always a bloodbath on Wall St. This time, it's the King of Shortsvile who has been beheaded:
Melvin Capital closed out of GameStop short position Tuesday | cnbc.com (5 min ago)
"Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, manager of the fund Gabe Plotkin told CNBC's Andrew Ross Sorkin.
"The brick-and-mortar videogame retailer, hedge funds' most-hated stock, was targeted by an army of retail investors who marshaled against short sellers in online chat rooms. In the Reddit forum "wallstreetbets" with more than two million subscribers, rookie investors encouraged each other to pile into GameStop's equity and call options, creating massive short squeezes in the name.
"CNBC could not confirm the amount of losses the firm took on the short position. Citadel and Point72 have infused close to $3 billion into Melvin Capital to shore up the fund's finances. Plotkin told Sorkin that the speculation that the firm would file for bankruptcy is false."
Smells like victory. Well done, Short-busters of r/WSB
Now, do we need a new thread for the
NYSE:AMC squeeze, or can we continue here?
Cheers!