Yesterday, Melvin Capital got fleeced at their own game. Coordinated on Reddit retail investors were able to drive the stock at one point almost over $100/share to $160/share on the day for a company that has been in the news recently as another failing business amongst many closing hundreds of their buildings while wallstreet was poised to short them into the ground and make a fortune off of their misfortune.
Melvin Capital Investment firm was the target of Reddit group “wallstreetbets” because of their disclosure of a large short bet that they had taken on GameStop. They were “bailed out” by a 2.7 billion dollar investment from citidal and point72 asset management because that’s just how these crooks operate but it was a huge win for the little guys and this blueprint has put quite the scare into wallstreet and the game that they’ve played for 50 years and have gotten filthy rich playing.
Will the market retaliate today in a show of force by the biggest market movers and manipulators? Keep an eye on this…there could be quite the ripple effect of this over the next few days and weeks.