Melvin Capital Management, a hedge fund that shorted GameStop stock, is now out of the stock after taking a reported “huge loss.” 

“I’ve just got off the telephone with who runs that firm, they have taken a rather huge loss, I do not have the full number on what that loss looks like,” said Andrew Sorkin of Squawk CNBC


Citadel and Point 72 have combined to infuse approximately $3 billion into Melvin Capital Management in order to “shore up its finances.”

However, speculation that the firm would file for bankruptcy is false, also according to Sorkin. 

The loss follows an army of Redditors who pushed GameStop’s stocks price up to highs of over 200% in an apparent snub fuelled by Wall Street resentment. 

“To some degree, they might be able to argue now that they succeeded, if this was really about vanquishing Wall Street, or vanquishing a hedge fund manager,” Sorkin said, adding, “They may not have put them out of business, but boy did they come close.”


Citron Research covered short positions at a loss

Andrew Left of Citron Research said he covered a majority of his short positions in the $90 bracket at a loss of 100%.

However, he also added, "I'm just fine. Citron Capital is just fine," "I have respect for the market."

According to Left, Citron Research was the first voice of the individual investor against the institution. "I took the lawsuits, I went to court, I took the questions to lay the foundation," adding, "But what I never did, was I never got personal, I never got nasty, and I never threatened a corporate executive, their family, or any shareholders."

Despite the loss on GameStop stocks, Left says he expects Citron to have a positive year in 2021.

"Even though we have been called Boomers many times in the last week, we understand the changing dynamic in the market," Left added.

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