Reddit users claim victory as $13bn hedge fund capitulates on GameStop

Melvin Capital boss Gabe Plotkin told CNBC that his fund had closed its position in GameStop on Tuesday. That came after Melvin Capital’s backers Citadel and Point72 pumped almost $3bn into the fund to keep it afloat.

GameStop shares dropped sharply from more than $340 in after-hours trading to $210 on Wednesday morning in New York before recovering to $320. The price had been as low as $6 at points last year and GameStop is not forecast to make a profit until at least 2023.

In a now-deleted post he said that there should be “legal and regulatory repercussions”. Mr Burry, who gained notoriety after being portrayed by Christian Bale in Hollywood movie The Big Short,  reportedly made a 15-fold return on his own fund’s investment in GameStop. 

This content was originally published here.