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Did Melvin capital actually close their short?
The puts reportedly expired before news of Melvin’s initial losses were made public in a January 22 report in the Wall Street Journal. Following the Journal’s story, GameStop stock began to soar, and Melvin said it closed out the entire short position on Jan. 26, one day before the stock hit its peak closing price.
How is GME not pump and dump?
Right now, the only ones benefiting from someone sticking a year’s worth of incoming into GME are those doing the pumping. If the stock was <100\% shorted, it would be a pump and dump. No matter how much people buy, they can’t buy >100\% of the shares on the market unless GameStop issues new shares.
How did Reddit find out about Melvin capital?
The Reddit users were able to discover Melvin Capital’s short against GameStop because it was expressed in listed put options. Unlike most short positions in the U.S., those bets must be disclosed in filings with the Securities and Exchange Commission.
How much did Melvin capital loss on GME?
BOSTON, April 9 (Reuters) – Melvin Capital, the hedge fund at the center of the GameStop (GME. N) trading frenzy, lost 49\% on its investments during the first three months of 2021, a person familiar with the matter said on Friday.
What happened Melvin capital?
Gabe Plotkin’s Melvin Capital Management ended the first half of 2021 down 46\% as the hedge fund struggled to bounce back from a vicious attack by Reddit traders on its short positions. The firm, which plunged in January as its bearish bets on companies including GameStop Corp. and AMC Entertainment Holdings Inc.
Is melmelvin shorting GameStop?
Melvin was running two of the five biggest short positions in Europe last month, for example, as measured by short interest in a company’s stock, according to data group Breakout Point. Melvin’s August filing showed it owned put options for 3.4m GameStop shares, instruments that rise in value as the stock goes down.
Did Melvin Capital lose 53\% of its investments in January?
Sources familiar with Melvin Capital confirmed to ABC News that the hedge fund lost 53\% of its total investments in January. The saga took an unexpected turn on Jan. 28 when retail trading platforms including Robinhood and TD Ameritrade abruptly restricted most transactions involving GameStop stock.
How did Melvin put a target on itself?
But by using the options market for the bet, which forced it to disclose the position, Melvin had put a target on itself. An eagled-eyed Reddit user called Stonksflyingup was not the only one to spot Melvin’s position, but they might have been the most prescient.
Did GameStop’s GME squeeze ‘demise of Melvin Capital’ turn into a nuclear reactor?
In an October 27 video posted on the WallStreetBets message board — titled “ GME Squeeze and the Demise of Melvin Capital ”, using GameStop’s three-letter stock market ticker — the Redditor used a scene from TV show Chernobyl to portray Melvin as a nuclear reactor that would blow up when its bet against GameStop went wrong.