Shorts gone wrong on GameStop stock by Melvin Capital led to losses totaling 53% in January, according to SteetInsider. Melvin already covered the short position in GameStop, and the fund massively de-risked its portfolio.
- Melvin Capital received a $2.75 billion emergency investment from Citadel and Point72 on January 25th as losses intensified on GameStop’s short bets.
- GameStop shares have surged 1625% year-to-date as traders from Reddit forum Wallstreetbets and other retail investors bought shares heavily shorted by hedge funds.
Melvin Capital started the year with about $12.5 billion but now runs at least $8 billion.