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Melvin had already closed out their short position in GME by the time Citadel invested in them. https://www.usnews.com/news/top-news/articles/2021-01-27/hedge-

• sixQuarks 6y ago
  That's not a verified fact. It's based on a CNBC reporter repeating what an unnamed source from Melvin told them, and even so, the way they worded it was vague, in that it could have simply been a small part of the short position that was closed. This is exactly why we need an unbiased source to look into this matter.
  • dcolkitt 6y ago
    > It's based on a CNBC reporter repeating what an unnamed source from Melvin told them FTA: > "Melvin Capital has repositioned our portfolio over the past few days. We have closed out our position in GME (GameStop)," the spokesman said in a statement.
    • byecomputer 6y ago
      Citadel was clearly infusing cash into Melvin to compensate for Melvin's massive losses on GME, though. What's the significance of Melvin's position in the stock in the few days before or after Citadel bailed them out when the reasons remain the same?