Retail investors who gather on r/wallstreetbets Reddit forum have been financially raping and pillaging hedge fund firm Melvin Capital. The stock GME has made significant moves that have occurred in the last few days. Reddit users have taken advantage of the incredible short interest in the video game retailer GameStop. Additionally, hedge fund Melvin capital published GME was a great stock to short.
This miscue on a valuation by Melvin Capital has incentivized retail users and Wall Street Bets to continue to take advantage of the large short position. Even after Melvin Capital secured a $2.75 billion investment by Citadel and Point72 Asset Management, the stock continued to rise.
GME has just destroyed Melvan Capital, and now it seems like an all out war between ivy league investors and retail rebels. Who will be handing over the easy money to who when it’s all over?
Melvin Capital, to file bankruptcy as soon as next week according to sources.
The bailout they received yesterday from Citadel and Point72 went “poof” today as the GameStop ( $GME ) momentum continued.
The fund was forced to liquidate its Alibaba ( $BABA ) position after hours.
— WallStreetBets & Co. (@WSBConsensus) January 27, 2021