THE ‘GAMESTOP’ STORY: Reddit’s GameStop stock battle with Wall Street is turning into a war: ‘Wall Street’s bets against GameStop were upended when users from a Reddit forum decided to bet on its success instead. Now billions of dollars are at stake.”
The GameStop stock buying frenzy has left some major money movers holding the bag while lay investors have managed to make huge amounts on the Reddit-driven market movement.
Steve Cohen, the billionaire owner of the New York Mets, was among those who were the target of lay investors’ rage. Mr Cohen’s hedge fund, Point72, recently joined with Citadel, who invested $2.75bn into Melvin Capital, another hedge fund.
Melvin Capital took a huge short position on GameStop, putting it in the unenviable position of potentially having to buy the stocks back at ludicrously inflated prices. Mr Cohen helped bail Melvin Capital out after it took major losses on the short sell attempt.
Concerned Mets fans asked Mr Cohen if his potential losses would affect the baseball team’s payroll. Mr Cohen seemed unconcerned and egged the Reddit investors on.
“Why would one have anything to do with the other?” Cohen asked. Later, he noted the abuse he was taking on Twitter, calling it a “rough night” but went on to prod the Reddit investors.
“Hey stock jockeys, keep bringing it.”
On Thursday, Mr Cohen was fielding questions with investors after Robinhood halted traders from purchasing more GameStop stocks. In response to Dave Portnoy, the owner of Barstool Sports who became irate in the wake of Robinhood’s decision to halt trading on its platform, he claimed he was just trying to make a living like anyone else.