Yes, that is out of business losses for multiple hedge funds. That’s not just Melvin Capital. Melvin was $12 billion total assets.
And that’s not counting the losses from AMC quadrupling, BB quadrupled, BBBY, NOK.
These jokers are going to want a bailout. If Congress has to vote on it, they are going to need to bring back all the National Guard troops and the 12 foot fence !
Reddit intentionally purged much of its conservative membership with the closure of various subreddits eg ones dedicated to Trump. The usual specious reasons were given.
The point is that most remaining on Reddit are of neutral or liberal political stances.
The Wallstreetbets crowd are hardly conservative or libertarian. In fact, they are probably more left especially since they view their cause as Robin Hood-esque.
However, they are quickly discovering what happens when the Big Tech/Government tactics are aimed at them. They’re being frantically deplatformed with no explanation or recourse.
The Nasdaq CEO is a quota-hire glamour-puss airhead in her leather jacket looking down her nose at the hoi polloi.
SUPPOSEDLY Janet Yellen (yes that old boiler again) was on the phone with various and sundry insiders and power players trying to figure out how to subvert the subversion. I don’t think she is taking all possible consequences into consideration. They’re panicking.
While I enjoy the entertainment found in the battle of pajama boy day traders versus Wall Street hedge fund sharks, it is not going to end well. Federal bail out to restore liquidity in the credit markets? Stock market bubble pop crashing our 401K's? Both?
Is it foolish to believe this a false flag to enhance our dependence on Fed.Gov?
I am sure Melvin didn’t have the majority of its assets tied up in short options of a single stock...
If they did they deserve to go out of business.
I’m sure the losses aren’t fun... but hardly should 1 stock dissolve a fund.
These Hedge Funds do everyday what Reddit buyers are doing.
So what is the difference?
I don’t understand why they are crying about it?
I bought NOK on Friday. Sold 1/3 on Tuesday. Sold 1/3 Tuesday, sold last 1/3 13 minutes later. 70% up. I don’t intend to be hog. :)