This is an automated archive made by the Lemmit Bot.
The original was posted on /r/Superstonk by /u/rightup on 2024-04-08 18:09:16.
Jan. 25th 2021, Citadel and Point72 wired 2.75 billion into Melvin Capital.
January 28th 2021, they had no other option but to shut off buying. 2.75 billion was not enough to cover the losses if the prices continued to rise.
Steve Cohen thought they had the problem solved, so he tweeted: "I’m not feeling the love on this site today . Trading is a tough game . Don’t you think?"
February 18th, one trader said: "I like the stock."
February 19th, $GME closed flat.
Between Monday, February 22nd and the high on March 10th, (13 trading days), GameStop rose +758%
Citadel began redeeming their investment in August of 2021, about 6 months of total investment time.
First $500 million. Another 1.5 billion by February of 2022.
March 10th, 2022, Point72 redeems 750 million from Melvin.
"The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose.
How do I know? I helped design the game.
A few years ago, I worked at the massive hedge fund Citadel. The multi-billion dollar fund was caught up in this week’s scandal for bailing out hedge fund Melvin Capital after everyday traders on Robinhood appeared close to liquidating the fund through mass buying of the GameStop stock $GME.
My role at Citadel was as an engineer in Long Term Quantitative Strategies. The entire department, filled with programmers and compliance officers, is dedicated to something called ‘alpha’ which determines the buying strategy of the fund. I was responsible for innovative proprietary technology that capitalizes on public data faster than any other hedge fund. It’s a classic situation of machines against humans. I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds."