WallStreetBets Wins Another Round...GameStop At $300+

In recent days and weeks The WallSteetBets have drove the price up not only in GameStop, but also Bed Bath & Beyond, BlackBerry and AMC.

One hedge fund, Melvin Capital, a $2.2 billion hedge fund that focuses on short selling stocks is down 30% this year. It has gotten so bad, so quickly for Melvin that Steve Cohen's Point 72, Ken Griffin's Citadel, and other partners came to the rescue and infused $2.75 billion into Melvin Capital on Monday. It’s not Wednesday. That $2.75 billion is now gone and has been transferred to WallStreetBets.

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.

CNBC could not confirm the amount of losses Melvin Capital took on the short position. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin’s hedge fund to shore up its finances. On Wednesday’s “Squawk Box,” Sorkin said Plotkin told him that speculation about a bankruptcy filing is false.

Short seller Andrew Left of Citron Research said Wednesday he has covered the majority of his short position in GameStop at a loss. He previously said GameStop will fall back to $20 a share “fast” and called out attacks from the “angry mob” that owns the stock.

According to S3 Partners, in 2020, short sellers lost $243 billion in 2020. In January alone, the short sellers are down $91 billion.

We still have two trading days left in January...Koss Corp...Express are pumping too.