He shared the story of the first time his mother attended a home football game at The Citadel. GameStop's stock dropped sharply on Thursday, but the damage has already hit hedge funds hard. It’s funny how it’s impossible to feel like a … Even then, Rep. Vicente Gonzalez (D-TX) pointed out that in 2020, Citadel violated the Security Commission’s Reg SHO, the rule regulating short sales. Press question mark to learn the rest of the keyboard shortcuts. RH selling buy/sell order flows to HFTs. GameStop short interest is currently at $5.51 billion, up from $276 million a year ago, making it the 12th biggest U.S. equity short. Plotkin "biggest … This is correct; Melvin did short GME, and no doubt lost bucketloads of money. I'm guessing they most likely were given a heads up. GME / GameStop Corp. short volume is shown in the following chart. If true, the firm could have realized the maximum loss. nceqs3 3 months ago. GME: The Highest Percentage of Float Shorted in the World . Warning: Don't go thinking that this will aid them in covering, and even if we go below $40 nothing changes. This is a liability because Citadel is responsible for paying back the securities they borrowed and sold. CNBC could not confirm the amount of losses Melvin Capital took on the short position. Exposing scams: RH order flows and Citadel frontrunning. An unusual battle has been playing out between anti-establishment Reddit nerds and Wall Street's corporate titans over the past week. Short sellers are betting that GameStop will decline in price. GameStop's stock is trading down $2.13 today. That would get the short positions off of Citadel Securities books, effectively "covering" them, and allow them to show FINRA a lower short position holding. They then use their Market Maker status to continue issuing shorts on a stock like GME, causing the price to fall, and the short positions of Melvin and Citadel Advisors to go up in value. It’s funny how it’s impossible to feel like a completely lunatic explaining the truth with all the illegal shit … Press J to jump to the feed. I DID IT. Melvin Capital was one of the biggest players short-selling GameStop stock, or GME. As we also know, Melvin got an emergency cash infusion of $2.75 billion last Monday from Citadel and Point72 to help them with their GME shorts. The media reported that the fund, which did not live up to its name of “hedging,” closed its GameStop short position. It will be interesting to see who the winners and losers are when the game is over and GME is back to $10 or $20 per share. That would get the short positions off of Citadel Securities books, effectively "covering" them, and allow them to show FINRA a lower short position holding. So far, Citadel, its partners and Point72 have lost money on the deal, though the precise scope of the loss was unclear Sunday. Melvin has massively de-risked its portfolio, said a client. Yeah even if one POD at Citadel (hedge fund segment) was short GME or increased GME short before Robinhood GME stop there will be many … Ken Griffin, CEO of Citadel, said Citadel was the only major market maker to provide continuous liquidity throughout the most volatile period of the recent WallStreetBets “meme” stock frenzy. With banks hobbled by new regulation after the financial crisis, Citadel Securities became a major force in trading. Citadel Securities shorted $22 big ones (that's billion) in 2018. In the summer of 2020, Seabrooks gave another interview as part of the oral history project. Citadel, as a market maker that has to accept all buys and sells, gets a pass on many naked short selling rules. 33. Short selling GME is an investing strategy that aims to generate trading profit from GameStop as its price is falling. GameStop, for example, a struggling mall video game store, has posted two straight fiscal years with hundreds of millions of dollars in losses. 1 day ago. And it is unkown whether or not Citadel, the hedge fund, has short positions on Gamestop - ownership of Melvin and/or ownership of short positions themselves is the implied motive for Citadel. When an investor makes a short sale, they do so with the belief that a security will decline in price. I convinced my parents to buy GME. 18 Feb. XRT & GME short vol up. If you're thinking "that sounds a lot like a short", you're correct. Chicago billionaire Ken Griffin is playing an unwanted and unexpected role in the Wall Street saga involving trading app Robinhood and heavily shorted stocks such as GameStop. Log In Sign Up. This is easily verifiable. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin's hedge fund to shore up its finances. If the stock does … On a post the other day someone sent the following helpful link with positions hedge funds have. _____ I DID IT. In summary, Citadel is one of Robinhood’s biggest customers. If the short sale volume increases as a percentage of the total volume, then that suggests a bearish (negative) sentiment by the market. If short sale volume … Granted the hedge fund is separate from the market making business but who knows right . User account menu. I convinced my parents to buy GME. Citadel securities is one of the major market makers that handles orders for Robin hood. Melvin according to what we could find has made billions on the bet that said stock would tumble and would continue to do so after winning said bet. Steve Cohen's Point72 and Ken Griffin's Citadel are investing $2.75 billion in Melvin Capital. Close. Short-sellers have lost over $5 billion in betting against GameStop as they battle Reddit traders. Founded in 1984 as a software retailer, GameStop transitioned to games in the early 2000s and was extremely successful, selling consoles, games, and accessories to consumers. The a mirror image of the mechanics that led to the short squeeze exist for many WallStreetBets folks. 33. Short-sellers took a hit as GameStop shares have risen to unprecedented levels in what analysts dubbed an irrational rally stoked by day traders. Ken Griffin's Citadel and Steve Cohen's Point72 Asset Management are investing $2.75B into Melvin Capital to help stabilize the fund that has ben hammered by bad short bets this year. Citadel(HF) does not own Robinhood.