GameStop’s story continues. Its shares rose another 65% today, Friday after online brokers re-allowed their clients to trade in those shares. And hedge funds were forced to dump large packages of blue chips APPLE, AMAZON and others, to cover losses on short positions in GameStop, which provoked a fall in the S&P and NASDAQ indices.
Hedge fund Melvin Capital received $ 3 billion in urgent funding today to hold its short position on GameStop. And hedge fund Citron has confirmed its market position and that GameStop shares are inadequately overvalued and should fall multiple times, and that it will no longer publicly disclose its short positions.
The total pool of hedge funds specializing in uncovered selling of stocks of companies with an outdated business model or deteriorating financial performance, which include: Citron, Jim Chanos’ Kynikos Associates, Carson Block’s Muddy Waters Research, Ben Axler’s Spruce Point Capital Management and several others, taught according to experts, the cumulative loss of about $ 10 billion over the past two weeks.
Let me remind you that GameStop is a company that specializes in the retail resale of used video consoles and cassettes, and for the second year in a row generates losses on average half a billion dollars a year, and a drop in revenue by 30% y / y.
Keith Patrick Gill – see link – YouTube video blogger and the very guy who provoked the corner at GameStop and earned about $ 40,000,000 in this position explains his actions by the fact that he sincerely believes in the growth of GameStop … Inspired by his example, thousands of private followers followed, who began to copy his public positions. In a professional environment, discussions erupted over whether he broke the law by publicly disclosing his transactions. The New York attorney opened an investigation.
It seems at the Moscow Exchange already, not so long ago, there was a similar story with auto-following? )))