Rumors circulating out of Wall Street say that Melvin Capital is underwater to the tune of billions after doubling down on their GameStop Corp. (NYSE:GME) 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.
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Melvin Capital Forced To Step Down
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.
Melvin is likely gonna be forced to liquidate all holdings in attempt to try to take some of the burden off, but this likely means the permanent closing of Melvin Capital. Gabe was later seen on TikTok sobbing about how he was going to have to prostitute himself for cheeseburgers to make ends meet.
This post first appeared on The Stonk Market
Disclaimer: This is a satirical article.
