WSB certainly has the narrative locked up, but that doesn't actually mean anything when it comes to who is walking away with fatter wallets.

There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out.

>There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out.

What makes you say that? Any idea of what is happening?

Basically, because they're not wrong on the facts, and they're far from the first to realize that.

There's a decent not-meme-based story around GameStop's turnaround, and a number of actual investment firms saw it weeks before they did. Investment firms are betting against each other, as per usual.

Also, now that GameStop has all this extra value, they can actually improve, so the not-meme-based story becomes even more compelling.

>Look at Melvin - they are trying to convince the market they are still solvent.

From the article in my previous comment:

>Even assuming the worst case scenario here (let’s assuming somehow the put value was $10 and they held until now and the put is worthless, the max loss is $54 million for a hedge fund with $20 billion AUM, for a max risk of about 0.27%), Melvin Capital is sleeping fine. Because they bought puts, and didn’t short shares directly, their max loss is capped (the premium they paid).

You don't know if they shorted shares. Shorts are not disclosed on 13f's. Often times funds buy puts and short at the same time.

It sounds like they did short shares of gamestop. When the first article came out it said their puts had already expired. Gabe Plotkin called into CNBC this morning and said their "short had been covered" meaning that they did short shares.

ftfy!

https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddi...

"Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund’s manager told CNBC’s Andrew Ross Sorkin."

Daddy Cohen just loaned them 3 Billion so they could stay solvent. Might want to check your math.

https://www.ft.com/content/8be64f49-7c90-4fae-8370-c5c5c96d8...

TLDR Melvin Capital is already down 3.75 Billion 3 weeks into 2021...

Kinda feels like Billions got this whole industry right.

I seen that show, and I enjoyed it--though, not because it offered insight into hedge funds or wall street. I enjoyed it because they dramatized wall street. one hopes a good drama will say something 'right' about suffering, triumph, betrayal, love, in the process all while putting likable and interesting actors in key roles. I agree; good show.

Egging on reddit certainly doesn't help. I agree with the notion of shorting game stop but don't make a big fuss about it.