4 ms·

CNBC reported that Melvin Capital closed on their GameStop position [1]. So it's basically over, right? Or is there more to it? [1] https://www.cnbc.com/2021/0

CNBC reported that Melvin Capital closed on their GameStop position [1]. So it's basically over, right? Or is there more to it? [1] https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddit-board-melvin-capital-closed-out-of-gamestop-short-position-tuesday.html https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddi...

djbebs 6y ago
There is no evidence that is true, and short interest is still above 130% so it sounds like a lie to discourage additional buying of gme
- echelon 6y ago
  Where do you determine short interest figures for a stock? Are they accurate to the hour? My impression was that this information wasn't reported at a regular cadence, but I have no idea.
  - tekknik 6y ago
    Buy a dataset, get it from your broker or use a bloomberg terminal. The info available to most retail traders in their stock app of choice (and certainly true for RH) is pretty abysmal
    - nrmitchi 6y ago
      I suspect that RH drastically limiting the information available to their users is all designed to limit analysis and make people feel more confident that they fully understand everything they are doing. People trade more when they feel more confident.
317070 6y ago
So, from what I understand (I did not do the maths myself), despite Gamestop being the most traded stock right now, not enough has moved in the premarket for Melvin Capital to actually close their position when they claimed they did. It seems a very dubious claim.
dash2 6y ago
Other shorts may well have moved in. Shorting at 3$ was optimistic. Shorting at $300 is less so. Some people are saying that Melvin Capital lied. That seems unlikely: my guess is that you'd go to jail for a long time if you lied about your purchases to manipulate the market on such a grand scale.
- sjg007 6y ago
  Lie or go bankrupt? Hard choice.
- pivoter 6y ago
  because melvin capital and citadel investments have a long track record of being clean and not fined for breaking laws... oh wait
- llampx 6y ago
  Its cute that you think anyone in the cozy wall street / hedge fund family would go to jail for lying.
  - nearbuy 6y ago
    Bernie Madoff, Conrad Black, Martha Stewart
    - mmmeff 6y ago
      Even then, it’s more of a “jail” than a jail.
      - nearbuy 6y ago
        I don't know that much about it. Martha Stewart went to a minimum security prison for female inmates, and honestly, she's exactly the type of criminal that belongs in minimum security. The judge recommended they send her to her first choice prison (in Danbury) but for some reason they couldn't and they sent her to a prison she didn't want. I'm not really seeing favoritism here. She was investigated for insider trading, but those charges got dismissed and she was ultimately just convicted for lying.
1234throwaway 6y ago
they most likely sold the position from melvin capital to another entity to hold the risk. that way melvin capital can say "oh yeah we caved in haha reddit wins" to try and calm the market, but I would wager that some private citadel fund is now about to be forced to fellate the reddit call pump

djbebs 6y ago

There is no evidence that is true, and short interest is still above 130% so it sounds like a lie to discourage additional buying of gme

echelon 6y ago
Where do you determine short interest figures for a stock? Are they accurate to the hour? My impression was that this information wasn't reported at a regular cadence, but I have no idea.
- tekknik 6y ago
  Buy a dataset, get it from your broker or use a bloomberg terminal. The info available to most retail traders in their stock app of choice (and certainly true for RH) is pretty abysmal
  - nrmitchi 6y ago
    I suspect that RH drastically limiting the information available to their users is all designed to limit analysis and make people feel more confident that they fully understand everything they are doing. People trade more when they feel more confident.

317070 6y ago

So, from what I understand (I did not do the maths myself), despite Gamestop being the most traded stock right now, not enough has moved in the premarket for Melvin Capital to actually close their position when they claimed they did. It seems a very dubious claim.

dash2 6y ago

Other shorts may well have moved in. Shorting at 3$ was optimistic. Shorting at $300 is less so. Some people are saying that Melvin Capital lied. That seems unlikely: my guess is that you'd go to jail for a long time if you lied about your purchases to manipulate the market on such a grand scale.

sjg007 6y ago
Lie or go bankrupt? Hard choice.
pivoter 6y ago
because melvin capital and citadel investments have a long track record of being clean and not fined for breaking laws... oh wait
llampx 6y ago
Its cute that you think anyone in the cozy wall street / hedge fund family would go to jail for lying.
- nearbuy 6y ago
  Bernie Madoff, Conrad Black, Martha Stewart
  - mmmeff 6y ago
    Even then, it’s more of a “jail” than a jail.
    - nearbuy 6y ago
      I don't know that much about it. Martha Stewart went to a minimum security prison for female inmates, and honestly, she's exactly the type of criminal that belongs in minimum security. The judge recommended they send her to her first choice prison (in Danbury) but for some reason they couldn't and they sent her to a prison she didn't want. I'm not really seeing favoritism here. She was investigated for insider trading, but those charges got dismissed and she was ultimately just convicted for lying.

1234throwaway 6y ago

they most likely sold the position from melvin capital to another entity to hold the risk. that way melvin capital can say "oh yeah we caved in haha reddit wins" to try and calm the market, but I would wager that some private citadel fund is now about to be forced to fellate the reddit call pump