A few hedge funds (of different sizes) are indeed losing billions. A few other hedge funds have taken the opposite side of this bet and are making money. The vast majority of hedge funds have no position in this stock and are completely unaffected.

In addition a bunch of HFT shops and similar making a lot money off the volatility and order flow all this has caused.

Perhaps, but for every dollar that gets transferred to a small handful of regular investor, I suspect at least 10, if not a 100, is probably being transferred to different institutional investors.

I just don't buy the Wall Street vs The People narrative. This is Wall Street vs Wall Street with The People picking up scraps from the battle field and hoping they don't get stepped on.

Conversely, a few investors that bought cheap might have made huge returns - if they sold at inflated prices (passing the hot potato to the next greater fool). If they didn't sell, then the paper gains will vanish.

https://www.google.com/amp/s/www.marketwatch.com/amp/story/l...

A Korean fund made a billion dollars on a 12 million dollar GmE investment and they were only the 7th largest holder of GME shares. The wsb narrative of this sticking it to Wall Street is just false.

I personally think it’s a narrative propped up intentionally by wsb insiders for their own gain. This is just a modern distributed boiler room. Retail traders always pay in those scenarios.

Yes, in particularly the passionate pleas to buy in more and HODL, stick it to the man, stick it to the evil shorts. While enabling the early longs to cash out profitably.

Bit like Bitcoin, really.

I've been noticing some interesting patterns. Accounts that seem to have been abandoned for months or years are commenting all of a sudden.

Makes me think some of these very similar looking frantic lunatic posts are part manufactured.

It'll take a good effort to show it conclusively

Some are losing money. But that is nothing new. Hedge funds die every day ... on paper. But which brokerage houses are going under? Other hedge funds are doing fine, likely profiting on this. The fact that a few are held out as victims sounds, to me, like the other funds just stoking the panic. I don't see any non-paper houses closing over this. This is Gamestop, not the mortgage crisis.

There are thousands of hedge funds, just because a handful have been caught with their trousers round their ankles doesn’t mean the others aren’t profiting from current volatility.

It seems like they've all closed their shorts already, most of them did on like day 2 I believe.

In addition, other hedge funds have been on the winning side of this trade. Some of the orders for GME last few days have been absolutely massive, not coming from retail.

The data doesn't back up the broader (and presumably intended) interpretation of their statements.

In my (inexpert) opinion THAT is the definition of market manipulation.

I've seen this "claim" all over the internet. It's not true. The statements released by Melvin Capital were unambiguous and of course short interest on Gamestop is going to go up when it surges to such high prices.

Why are so many people repeating the same misleading talking points over and over?

Source?

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

"the hedge fund’s manager told CNBC’s Andrew Ross Sorkin."

So this is completely based on a phone call and Melvin Capital can just claim that Andrew Sorkin misunderstood them.

There's no public statement from Melvin Capital, which makes me suspect that they were indeed just trying to manipulate public perception, they could have just not talked to journalists about their positions, which is their official policy.

This whole thing is disgusting. Once the euphoria had subsided, people will realize that the hedge funds have come out as bandits, having traded nickles for dollar bills.

Which ones? Citadel/Melvin/Citron (is this all the same one?) and which others?

Money is lost when a retail investor holds onto their shares not just when the stock price rises.