GameStop takes short positions | Hedge funds lose hundreds of billions of dollars in a single month. Muddy waters say some hedge funds may kill each other with short positions | Apple Daily

GameStop’s short position seems to be diminishing. According to IHS Markit data, the proportion of GameStop’s short positions in the circulating market value has dropped from 114% in mid-January to the latest 39%. This is no longer the extreme situation earlier. As for the data from S3 Partners, the proportion of GameStop’s short positions has increased from approximately at the beginning of the year. 140% dropped to around 50%; Ortex data indicated that the short-selling rate had dropped to 49% last Friday.

GameStop’s speculation weakened, and its stock price dropped immediately. The US stock market fell 30.77% last night to US$225; after-market trading fell another 15.77% to US$189.52. However, hedge funds also suffered heavy losses in this battle. According to “Reuters” quoting Ortex data, hedge funds recorded a monthly loss of US$12.5 billion in January, equivalent to HK$97.5 billion.

Although GameStop’s share price has fallen by more than 60% since its high, and the proportion of short positions has also fallen sharply, many retail investors on the Wallstreetbets group on Reddit still insist on holding it, and some people suggest to buy it when it is low.

Muddy waters say that hedge funds may kill each other with short positions

Carson Block, the founder and CEO of Muddy Waters, a short-selling agency, suspects that hedge fund peers participated in the GME storm and killed each other. In an interview with Bloomberg, he saw a familiar trajectory and a parabolic trend in the upward trend of stocks such as GME. Not much like retail investors on Reddit, but more like hedge funds’ short positions against other hedge funds. Block’s view implies that the so-called “epic retail investors holding short positions” may just be a cannibalism between hedge funds. Block said that in the weeks before the GameStop incident, Muddy Waters also experienced an injury. He believed that he had encountered a hedge fund’s short position against GSX. Because of this incident and similar circumstances, he had to hire a trader to monitor the stock options market and adjust positions to manage risks more proactively.

U.S. House of Representatives will hold hearings

The US House of Representatives Financial Services Committee issued a statement stating that a hearing will be held on February 18 on the market volatility of GameStop and WSB concept stocks. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said in an online discussion that this incident was only a speculative game between one group of people and another group of people on individual shares, which did not worry him, nor did he change his currency Policy perspective.

Robinhood raises 3.4 billion for settlement payable

According to a Reuters report, Robinhood recently approached banks to seek additional borrowing lines to meet the capital needs of retail investors holding short positions, involving a capital of US$1 billion. Robinhood CEO Vlad Tenev reportedly stated on Sunday that the settlement agency required the company to increase the amount of US$3 billion as collateral. The company had raised US$3.4 billion from investors led by Ribbit Capital last week, including the 2.4 billion it injected on Monday.

The share price of GameStop is under pressure, and Robinhood, the securities firm, has obtained more financing, so Robinhood has set a limit to 20 shares of GameStop.

Reddit retail investors move to BioCryst

Reddit investors continued to look for other WSB stocks. Yesterday, some netizens launched the “#BioWar” action, calling for the purchase of BioCryst, a biotech stock with a market value of only more than US$1 billion, which stimulated the stock to rise 39.08% yesterday to US$11.85; after-market trading It rose 8.69% to $12.88.

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