Gamestop loss 100 Wall Street short selling SOS to legendary ant leader

A representative of the hedge fund, called the’Legend of Short Selling’ on Wall Street in the United States, asked for help from the leader who led the ants (individual investor) corps.

According to the Wall Street Journal (WSJ) on the 28th (local time), Andrew Left, CEO of Citron Research last week called Jaime Lagerzinski, the creator of the Wallstreetbets discussion room of Reddit, an equity investment online community.

It is reported that some investors, angry with the big losses, have begged “Please help”, informing them that they are threatening even their own children. Representative Left is an investor specializing in short selling and is nicknamed’Wall Street’s bounty hunter’.

Representative Left made big profits by publicly betting on a decline in stock prices after pointing out companies with business problems among the companies that were included in the Standard & Poor’s (S&P) 500 index, centering on medium and large stocks.

In 2019, an African online commerce company listed on the New York Stock Exchange (NYSE) alleged that there was a problem, and the stock price was cut in half in one week. There is power dropped by more than %.

He recently announced a short sale, saying that the stock price of GameStop, an online video game vendor whose business outlook is uncertain, will go down. However, it ran into the wall of individual investors, centered on the Wall Streetbets debate.

In the end, he lost 100% of the funds invested in the short sale and removed his hand from GameStop stocks, but he was unable to calm the anger of the investors who lost money because of himself.

However, Lagerjinsky, who opened the discussion room, told WSJ that although he was heartbroken by the phone call from Representative Left, there was nothing he could do. Lagerjinsky resigned from the managerial role in April due to conflicts with other members of the forum.

The reason left representative asked the manager of the ant corps for help was that ants in the United States recently raised the gamestop stock price with aggressive purchases and won a decision over the stock price that started selling short.

According to the Associated Press on the 27th, the share price of GameStop once soared to $380. A few weeks ago, the stock was only $18, but it surged. This is the result of ants gathering at the Wall Street Betz, a stock-related bulletin board of Reddit, encouraging each other and gathering stock in GameStop.

Accordingly, the two investment companies that short-sell GameStop’s stock declared abandonment. First of all, Citron Research revealed that “100% of investment loss rate” through YouTube. The hedge fund’Melvin Capital’ also’exited’ because it incurred huge losses. The specific damages for Citron Research and Melvin Capital are unknown.

Reporter Kang Kyung-joo [email protected]

Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution