Rumors circulating out of Wall Street say that Melvin Capital is underwater to the tune of billions after doubling down on their GameStop short in early March. While Melvin saw some initial success we are told they ADDED to this position slowly over time, over the past week GameStop has begun to squeeze again sending the stock price well over $200. It is rumored Melvin is now billions in debt and is on the verge of total collapse.
It is being reported that Chief Investment Officer Gabriel Plotkin has been forced to step down after he demanded to double down the GameStop short after the initial GameStop mania in January. While he testified on Capitol Hill that Melvin had closed their short position, we now know that Melvin never closed its position and was actually steadily adding to it.