Infotech

GameStop: short sellers, atoning victims of Wall Street



Posted on Jan 28, 2021 8:53 PMUpdated Jan 28, 2021, 7:46 PM

An unprecedented wind of revolt has hit the Stock Exchange in recent days. The GameStop phenomenon has undermined the hierarchy of markets: an army of stock marketers has attacked one of the totems of global finance, “hedge funds”. Especially short sellers, who make money by betting on falling stocks on the stock market.

In total, short sellers have accumulated around $ 70 billion in losses since the start of the year in US markets, according to analyst firm Ortex. Those of Melvin Capital approach 30%. What push the fund to beg for help from other figures in finance, never seen before. It is not the only victim of the revolt of small investors. The list of “hedge funds” that have taken the water is growing day by day. Point72 and Candlestick Capital suffered losses of 10-15% on their portfolio in January, while that of D1 Capital Partners lost about a fifth of its value and that of Maplelane Capital nearly a third.

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