Page 61 - Gabe Plotkin News Today

More than a year after Gabe Plotkin's Melvin Capital Management was grievously injured in a short squeeze, the $7.8 billion hedge fund is shutting down.

A onetime industry star, Plotkin lost billions last year betting against retail traders' favorites, such as GameStop.

The fund, which Citadel's Ken Griffin and others had attempted to prop up in the wake of the Reddit-GameStop skirmish, will wind down after a botched reboot.

Melvin Capital, the hedge fund crushed last year after betting against GameStop, said it will unwind its funds and return cash to investors.

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

You never know. reporter:hedge funds have lost billions by betting against the stock. some little guys standto make millions. - fuck. [laughs] i missed it.the thesis was right. the group was right.the apes are winning. [roaring] reporter:some breaking news this morningon this gamestop story. gabe plotkin saying thatmelvin capital has been out, closed out its position. - the numbers and whathes down is dramatic. so the questionwill become there, what is the futureof that firm? unclear. stock expe...

Reporter:some breaking news this morningon this gamestop story. gabe plotkin saying thatmelvin capital has been out, closed out its position. - the numbers and whathes down is dramatic. so the questionwill become there, what is the futureof that firm? unclear. stock expert: around 10:30or 11 oclock in the morning, it comes out that thisbig fund, melvin capital, is short the stock andfeeling the pain, and they are takingmassive losses. this really emboldensthe wallstreetbets crowd. they justtook ...

And they have a marketmaker. - mr. griffin, why is this not consideredmanipulating a stock whenever you can shortsell to 140%? dont youthink there should be a limit on something like that? ken griffin:im not sure its worth us delvinginto legislative corrections for a very unique situation, in terms of the extremesize of the short interest. - why is it that a stockcan be shorted over 100%? i dont even knowhow youre allowed to do that. congressman: mr. plotkin, you made the commentin your testimon...

Ken griffin,melvin capital ceo gabe plotkin, and roaring kitty,the trader keith gill. reporter:no doubt lawmakers are furious and they want to havehearings about this. the problem is goingto most likely be that the systemis designed terribly. the system gets abused.and they need to make changes. - first of all, to me, this was a whole dogand pony show. - first, robinhood securitiesput the restrictions in place in an effort to meet increasedregulatory deposit requirements,not to help hedge funds....

Requirements,not to help hedge funds. - you can read body language.you can see the way theyre trying to weaselout of something. - i understand that partof the focus of this hearing is the decisionof stock trading platforms to limit tradinggamestop. i want to make clearat the outset that melvin capitalplayed absolutely no role in those tradingplatform decisions. - theyre not being honestand truthful about this. - i want to beperfectly clear. citadel securities had no rolein robinhoods decision to...