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Reddit Crowd Bludgeons Melvin Capital in Warning to Industry (1)

Jan. 27, 2021, 5:54 PM

The first sign of trouble for hedge fund wunderkind Gabe Plotkin came in late October: A poster on Reddit’s popular wallstreetbets forum was taking aim at his wildly successful investment firm.

“GME Squeeze and the demise of Melvin Capital,” wrote the user, Stonksflyingup, referring to stock ticker of GameStop Corp. and Plotkin’s $12.5 billion firm. Before long, veryforestgreen weighed in: “Melvin Capital New Short Attack.” Then, greekgod1990: “Melvin vs WSB! And GME to the moon.”

So it was that the tables turned on Wall Street -- and a hedge fund star suddenly found himself at the mercy of the day-trading ...