Melvin Capital sells out of GameStop

In premarket today it reached a market cap of 25B, which is 2.5x the previous all-time high market cap back when it was profitable and growing instead of on the verge of becoming Radioshack.

This is not just the new dotcom bubble, because although index PEs are as high as they were at the top of the dotcom bubble, stocks are still cheap relative to bonds. It's the everything bubble. It will end when the fed is no longer able to pump the real market cap of USD due to speculative attacks from bitcoin.
 
Hate saying this. But why would they do that. They know the stock is being played. Get more capital and short short short. The money they could make by averaging in at higher levels would get them every cent back when gamestop comes plummeting down to double digits
 
Snuskpelle said:
Melvin should've cut that turd of a trade earlier. Would guess they were in the pray and hope stage.
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Long short fundamental traders won't cut until the pain is too extreme. Their thesis is very much intact so in a normal situation they would be adding instead of cutting.

Sometimes the strategy doesn't workout.
 
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