Breaking News: Markets, Markets, Gamestop Corp, Andrew Ross Sorkin

Breaking News: Markets, Markets

Melvin Capital, hedge fund targeted by Reddit board, closed out of GameStop short position Tuesday

Hedge fund targeted by Reddit board Melvin Capital closed out of GameStop short position Tuesday

1/27/2021 2:24:00 PM

Hedge fund targeted by Reddit board Melvin Capital closed out of GameStop short position Tuesday

Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss.

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.

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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.

GameStop shares have more than doubled this week alone to nearly $150 apiece, driving its January gains to 685%. The stock was worth just $6 four months ago. GameStop shares gained about 30% in premarket trading Wednesday, after popping more than 100% earlier.

Amid GameStop's explosive rally, short sellers have accumulated a mark-to-market loss of more than $5 billion year to date in the stock, including a loss of $917 million on Monday and $1.6 billion on Friday, according to data from S3 Partners.Investor Michael Burry said in a now-deleted tweet Tuesday that trading in GameStop is "unnatural, insane, and dangerous" and there should be "legal and regulatory repercussions." Burry shot to fame by betting against the housing bubble and was featured in Michael Lewis' book "The Big Short."

The U.S. Securities and Exchange Commission declined to comment.Social Capital's Chamath Palihapitiya jumped into the controversial name,saying in a Tuesday tweetthat he bought GameStop call options betting the stock will go higher. His tweet seemed to intensify the rally in the previous session. The stock ended the day 92% higher at $147.98.

Also fueling the fire is Elon Musk, who commented on the mania on Twitter and linked to the "wallstreetbets" Reddit chat room. The Tesla CEO tweeted to his 42 million followers "Gamestonk!!" The comment sent GameStop shares soaring in extended trading Tuesday.

Read more: CNBC »

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Where's the story about what their total losses are? (Or was this a lie, and they're still in it?) You and CNN are fake news. Look at the shares shorted float and short interest % and tell me they covered their short position. Sure it did. Twitter fact check? Fine for Trump but CNBC gets a pass Liars HOLDTHELINE

Can I get uhhh a fact check? Stop the lies FUD Lies The real story is how Melvin Capital and other hedge fu da over shorted and are now being ground for it. That’s the story. Not this fake ass news yelling at everything else to cover up the real problem. Geez. Uh huh $ZOM Zomedica is NEXT WE KICKING SABBY LLC TO THE CURB TRUFORMA MARCH 2021! Do you Love Your Pets?

When was the last time Jim Crow caucus Wall Street backers donated all their profits to charity. Smart Occupy Wall Street is here to stay, no more protesting in the rain. The old valuation anarchist supporters should head to FL. We are making money &donating to Dems to defeat GOP Nice try Lol, sure they did. Because it's that easy to unwind a billion dollar trade, you just click a button to close out, right?

No they fucking didn't Why are you allowed to post misinformation? Isn’t this market manipulation? SEC_tradingmkts OccupyWallStreet ✊ Why would they leak that information to CNBC? Why wouldn't they just close out quietly? this should be consider as hate speech i call BS Fuck short sellers. Nah they lying If there are no retail investors left what happens to the stock market?

Reported for misinformation Lol no they did not liar liars! Pretty sure that's bullshit. Enjoy the SEC investigations. Liar, my trader still shows it shorted at 140% OK, so can I get an XBOX Series X from Gamestop yet, or what? CitronResearch you're next. Lol buuuuuullllllshit Liars 💎👐 LIARS! WE KNOW WHAT YOU’RE DOING. HOLD THE LINE 💎👐

Don't worry. Biden will bail out the billionaires before he even gets to the stimulus checks. 100% false. They may claim to have covered there shorts. But, I guarantee you they haven't. For those complaining: I wouldn't challenge this... because 'eat the rich' is the next item on the agenda. Better just to let your pennies go.

NoBailout allowed. The hedge funds foolish enough to short sell 139% of Gamestop need to learn math and to pay all the price without rescue. Think twice before short selling, and never 100% or more again. Well, $GME still has a short interest of 63 mil, so *someone's* getting fucked. Hedge funds target retail users all the time. It's called: 'algorithmic trading' and I used to build systems for a living that facilitated it. AMA

Stop using criminalizing language to paint a picture. Nobody “targeted” anybody. The hedge funds gambled and lost. There is a new player 1... US! RealColeWorld92 Lol, BULLSHIT. Maybe if they bought less coke they wouldn't be going belly up. Don't invest more than you can afford to lose Karma is a bitch Pure criminal what went on today. The little man lost money on this.

How much did they pay you to say that? Lets go together!!!! Join Robinhood with my link and we'll both get a free stock 🤝 Lies Liar Prove it. Have you vetted their position? Sure he did When will Melvin Capitol close out of $fubo ? 60% shorted Im out on you .. nbc in general is looking like the Trojan Horse. You're not liberal, you give zero fucks about the every day American, Im out. Peace bitch ✌

Yea, SEC_Enforcement. This network right here. Fake news 💎🙌🚀🚀🚀🚀🚀🚀 Mark my words. If the governor steps in the market will plummet. This is an epic troll job not some sort of organized crime syndicate Fuck POTUS for letting wall street off the hook. It's ok for us to lose but when they about to we turn the game off? Fuck outa here

THIS is what citizens should be doing instead of storming the Capitol! insurrectionists RobinHood hedge fund bloodsuckers and corporateRaiders need to be stopped This is some Prince John trying to kill Robin Hood kind of shit. Thats a lie. Nice try but those fuckers and you are going down. Time for you leeches to get what you deserve

They will close r/wsb and go to the old ally. Hate speech. Who we going after tomorrow? If anyone reading this wants to join Robinhood use my link 😸 Join Robinhood with my link and we'll both get a free stock 🤝 😂 Trying to use the media to get people to sell. They closed out of a very small portion of their short position. The majority is still in play...they just want people to believe it's over. Still 15 million shares shorted

No they didn’t. Pump and Dump is only illegal if it's on not publibly available information. This was technically publicly available 🤣🤣🤣🤣🤣 Lies!! Why is shorting even legal? Fake news !!!!!!!! Nobody sell until they are bankrupt Doesn’t anyone else think it is insane how easily the stock market can be manipulated? It’s crazy to me how fast things can change in the stock market.

No they didn't you fucking boomers Do you think people honestly believe that? Lol except this is bullshit. Good luck living this one down, clowns. 🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡🤡 NOT BUYING IT 😎 This is a lie No proof but pls believe us 🥺😭 Power to the players! lying swine, we're coming for you next. Looks like they got Melvined.

Can the press just lie like this and not face any consequences? FAKE NEWS. RIDE IT TO THE MOON!!!! Fake news. They're still in...i don't buy this news coming from CNBC No what would do real damage would be a massive price gap in the SP500 People sitting on hedged options would lose loads. Still 140% short they didn't cover shit, you claimed this premarket, which is IMPOSSIBLE!

Hedge funds got what they deserved. LIES This article is market manipulation. Fake News, short float from 140% to 138% only 2% drop is rediculous. Reddit didn’t target a hedge. They target a stock that was critically over-shorted. Get it right. SEC_Enforcement Should be looking into articles like this for market manipulation, more than anything dumbass redditors are doing. GME stocks are still 97% shorted. Melvin didn't close out. Not on everything, at least.

Big if true. This is sad, imagine being so blatant about all the lies you feed people This is a lie and SHAME on you for this blatant coverup. THE BIGGEST LIE CNBC HAS EVER PUSHED. NO WHY THEY CLOSED OUT THEIR POSITIONS BECAUSE WE WOULD SEE A DROP. IF THEY DID WHAT PERCENTAGE? nope. Twenty years overdue! Shortsellers are a disgrace to the noble vulture and shortbusters are my new favorite people! Get them, children. This is your time. Leave no moat uncrossed, no fortress unburned. investing stocks stonks

Lies. Keep losing credibility. B U L L S H I T and so it begins.... i wonder if melvin is shorting the stock now GME GMEtothemoon Same dudes, who were: *Giving out NINJA loans *Selling Credit Default Swaps & CDOs *To retail clients *As safe products w/ triple A rtgs Knowing they were junk! All over tv today talking about: 1) how they're worried this is dangerous for investors 😂 2) playing the victim

Bullshit propaganda. Proof? Who targeted who? CNBC doesn't know Haha no one fucking buys that .FCC is it legal to lie about this? Seems unethical fake news $gme Hahahahah pathetic attempt at market manipulation CNBC, get rekt This is a lie. HOLD YOUR POSITIONS! Stay mad. LOL This is a lie and attempted market manipulation

YOU ARE FAKE NEWS!!!!! SEC_Enforcement you cannot allow these boomers to manipulate the market like this! Don’t worry - they’ll still get their bonuses. Rly? Corporate press = enemy of the people. You're trying your best to protect them and it's adorable. Liar I hope some broke, depressed college students taking a semester off managed to get rich off of this.

False! No they didn’t. fake news there was not enough volume for them to exit. do ur jobs and actually research You think we're fucking stupid? Lies, you are a LIAR. I love this stock! 🚀🚀🚀🚀 fakenews I call bullshit Am I dumb or does this headline just seem like the suggested words above your phones keyboard?

$AMC and $GME. The done and dusted have beens that brought down hedge funds. 2021 showing 2020 around the workplace. GME AMC Lie bullshit. they're still in it and you're trying to help them out. CapaTosta122 I don’t think this tweet is legal. Good lmao other hedge funds are next, we will fleece the rich over and over and redistribute wealth

Well that's a disingenuous headline. When normal people lose money, hedge funds just say they're better at investing. Now, when normal people are making money, hedge funds and CNBC are crying foul and calling it targeting as though ordinary people shouldn't be in the free market. so it’s legal for them to short this stock?

Wow. F the suits!!!! This is a lie. Market manipulation Source: 'Dude Trust Me.' Hopefully people keep investing in game stop, and other brick and morter stores. We need to keep these places alive and making money. If we all came together and started investing we could save a lot of jobs. damn Show the ledger or it didn’t happen

good I bet they're shorting the current position right now. really? s3 data on bloomberg terminal shows positions still open .. no way you'd post a fake article to manipulate the stock right? dont sell keep buying I actually believe Melvin doubled down on its short. CNBC has always always always HATED the average investor and they will lie cheat and steal to try to extract as much money from hard working regular people as possible. They hate you and everything about you. Crush them and the funds they are slaves for.

fucking lying ass 🐍🐍🐍 Melvin didnt close. You're trying to protect them LMFAO Gladwell david and goliath? CNBC fake news Why you lying, CNBC? Start recognizing that this is smart retail investors discovering a bad bet made by hedge funds. You are tripping over yourself to blaming Reddit for this. It's sad.

officially or their lying which they do all the time. This is a lie. The shorts prove it. cnbc should be investigated for this BS. No they didn't 😂😂😂🤘🏼🤘🏼🤘🏼😬🚀 Bunch of lies none of this happened Nice try. Suck on this🚀🚀 Lies why would they announce that they are out of the position? They gain absolutely nothing from that. They are trying to spread this rumor so people sell and prices drop so they can save a few hundred million that they have to pay if market drops.

AHHAAHA IMAGINE BELIEVING THIS. Fake news 😆 LIES Lies tsk tsk, trying to help your friends my using your media platform? You underestimate reddit. THEY ARE LYING, HOLD THE LINE lmao well they didn't because short interest is still 130% nice try SEC_Enforcement Do not watch any cable news, people. It is blatant propaganda for the rich.

Show must go on Hiểu nhau thong cảm Time to explore if broker sites crashed as retaliation? SEC_Enforcement is this blatant lying not manipulation? I have made this account to comment that I reported you to the SEC for market manipulation. THEY DID NOT SELL. Fake news yeah, no COPY AND PASTE THIS. RIGHT NOW THERE IS STILL 103% SHORT INTEREST. I JUST TOOK THIS FROM ORTEX

This is actual market manipulation how do u guys live with yourselves Congress next Reddit RobinHood SEC_Enforcement orangepillpod There’s still over 100% short, don’t sell You're not making this better putting out fake news driving home the point WSB is making. orangepillpod This is VERY suspicious because it looks nothing like you are reporting... SEC_Enforcement needs to have a look at Melvin Capital. There are going to be movies made about this.

Tell ya what... let’s see what Ortex short interest data estimates are this morning and what the official SI report as of 1/15 days after close and maybe see where the price is Friday after close. Because Melvin isn’t the only short and we are pretty sure this is bull shit. Retweeting this and tagging POTUS JoeBiden. This is a lie with only 3m volume and you want to scare the retail investor? Playing dirty?

👀👀👀👀 Are there legal consequences if this is fake news? Probably not.... LAST NIGHT WAS NOT MELVIN CLOSING. YOU GOT TO BE KIDDING. HOW MUCH DID melvincapital PAY YOU Yep Just like WallStCynic is “Not Short, just Long Puts” orangepillpod Awesome! I thought you guys should do objectiv news-reports, how much money did they pay you to tweet that?

Closed on Tuesday and stock still rockets to 350 in pre-market? Nice try, liars. CANNOT COVER SHORTS PRE MARKET!!!!! They did not cover yesterday (or we would have been. At $2000+). CNBC bullshit spin premarket to help setup 930 shake out! Holding for pride because FUCK THIS BULLSHIT MANIPULATION! SEC_Enforcement, this is market manipulation right? I dunno though, just a stupid retail investor here...

LOL Thanks for the dip you stupid fucks. 💎🤲 PROOF OR BAN $GME 🚀 How do you guys feel, spreading lies? Lies, there's roughly 140% short float and they can't cover pre market. Last nights increase was due to elonmusk tweeting. So unless there's a boom at open I would suspect you've been lied to and/or are manipulating the market as they give you ad revenue to survive. $GME

Short interest is still over 100% and Melvin is unlikely to have been able to liquidate its entire position. Plenty of other players have yet to close/liquidate. Hold the line. This kind of market manipulation should be illegal SEC_Enforcement . Shameful Screw the shorts. Nothing I hate more than having a position in a company and then CNBC has Andrew Left on air with a big smirk on his face advertising his short on that company and seeing the stock price dip 15% on air. Does CNBC feel bad about those investors?

Lying to cover their asses.... noted 💎 🤲 still holding. Fake news Borsredaktion Hmm, this is market manipulation, is it not?