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Melvin Capital has been made to cover their short position by purchasing shares of GameStop at today’s elevated rates. Wall Street hedge funds were gambling on GameStop decreasing value, and if a stock is brief marketed, businesses are liable for actually setting the money. The hedge funds could not cover exactly what they had been gambling would occur, so they took a substantial hit. To put it differently, many beginners beat Wall Street hedge funds in their very own game. The trading program Robinhood was utilized by the beginners to push up GameStop’s inventory, together with Citadel doing business with this firm.
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