GameStop madness and the resurrection of short-selling myths
In general, short-sellers typically get singled out during crises as the public hunts for scapegoats.
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
A BATTLE of retail versus institutional investors reached its climax when Melvin Capital Management covered its short positions in GameStop at a signficant loss and had to be rescued.
As the price of GameStop soared from US$20 to almost US$500, Melvin Capital Management and other hedge funds with short positions on its shares suffered almost US$20 billion of losses.
While Wall Street investors cried foul, retail investors pointed to the nefarious nature of short-selling. As many celebrated hedge funds' losses, old myths about the trading strategy resurfaced.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Why where you park your joint venture matters: Lessons from a US$689 million shareholder dispute
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Singaporeans can now buy record amount of yen per Singdollar
