The complete moron’s guide to GameStop’s stock roller coaster

Found on Ard Technica on Thursday, 28 January 2021
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Last week, an epic short squeeze had driven GameStop stock up to $40 a share, a roughly 1,500 percent increase from its low point nine months ago. Little did anyone know at the time that this would only be the beginning of the story.

More recently, Melvin Capital Management has seen its value fall 30 percent this month, thanks in no small part to a heavy short position in GameStop. The hedge fund was forced to take a $2.75 billion cash infusion from Citadel to stay solvent in recent days. CNBC reports that Melvin finally closed out its short position Tuesday afternoon, i.e., taking a huge loss rather than redoubling on the short borrowing.

When a hedge fund gets into troubles, there are only tears of joy.