Incase you haven't caught up yet, a subreddit with 2 million users decided to Bognadof the Gamespot stock, so much that 3 days ago it closed $40 US dollars, then yesterday it was $75 and just now when the market closed it was $145 US. Gamespot is now worth 10 billion dollars, the first time ever in it's history and Melvin Investment, a hedgefund that was short selling the stock has lost an estimated 6 billion dollars, after receiving a 2.75 billion bailout yesterday from 2 other investment firms. This really is entertaining to watch and is costing someone rich a lot of money.
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Can Melvin make the money back if they re-short it or is it really gone?
In other words, is it just a paper loss for them or is it realized?
The thing about Melvin is they short traded the stock.
Now replace Tesla with Gamestop and $20 - $150
It's really gone. They've "borrowed" the stock at $20 from their broker just last week but now it's worth $150 meaning they have to pay that much for the stock itself. They've burnt through 6 billion and a 2.75 billion bailout, if the price stays like this on Friday, they simply won't have the capital to pay for the stocks and they'll have to declare bankruptcy.
I think. I'm just seeing how this plays out.
Lmao. I mean that sucks for them, but they fucked up.