Last week, Citadel, a hedge fund owned by billionaire Ken Griffin, provided the firm with a more-than-$2-billion bailout.
“The fund’s portfolio liquidity is strong,” the source said. “Use of leverage is at the lowest level since Melvin Capital’s inception in 2014.”
Melvin found itself at the heart of the GameStop saga after Robinhood suspended trading of the stock and several others Thursday. The move was followed by an onslaught of backlash from individual investors, such as those from Reddit, who felt Robinhood was giving into pressures from Wall Street and the requests of hedge fund managers.
The frustration from Robinhood users was soon followed by a class-action lawsuit against the stock-trading app for its decision of restricting trading of stocks like GameStop.
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