This document discusses the GameStop short squeeze of 2021 and the battle between individual investors on Reddit's WallStreetBets forum and hedge funds who had shorted GameStop stock. It provides background on GameStop, hedge funds like Melvin Capital that lost billions shorting the stock, and the role of platforms like Robinhood restricting retail investors. It also includes brief summaries of other companies targeted in the short squeeze and individuals like Michael Burry who successfully bet against the housing market before the 2008 crisis.

1. ANIL NAYAK
Normal People vs
Hedge Funds 
#wallstreetbets
reddit.com/r/wallstreetbets/
1st Feb

2. reddit.com/r/wallstreetbets/

3. #GME

4. GameStop Corp. is an American video game, consume
electronics, and gaming merchandise retailer.[2] The
company is headquartered in Grapevine (a suburb
of Dallas), Texas, United States, and is the world's large
video game retailer, operating 5,509 retail stores
throughout the United States, Canada, Australia, New
Zealand, and Europe as of February 1, 2020
Products: Video games, Consoles, Accessories
Revenue Decrease US$6.466 billion (2019)
Operating income Increase US$−464.4 million (2019)
Net income Increase US$−470.9 million
(2019)
Total assets Decrease US$2.82 billion (2019)[1

5. Valuation
?
Long or Short
?

6. WHY ?
GameStop short sellers
are still not surrendering
despite nearly $20
billion in losses this
month.
Market Cap –
7.45 Billion ???,
Loss ??

8. AMC Entertainment Holdings, Inc. (d/b/a AMC
Theatres, originally an abbreviation for American Multi-
Cinema; often referred to simply as AMC and known in
some countries as AMC Cinemas or AMC Multi-
Cinemas) is an American movie theater chain
headquartered in Leawood, Kansas, and the largest movie
theater chain in the world. Founded in 1920, AMC has the
largest share of the U.S. theater market ahead
of Regal and Cinemark Theatres.
After acquiring Odeon Cinemas, UCI Cinemas,
and Carmike Cinemas in 2016, it became the largest
movie theater chain in both the world and the United
States.[3] It has 2,866 screens in 358 theatres in Europe
and 7,967 screens in 620 theatres in the United States
10 Times
up

9. 2% 100%

10. Citron Research publishes investment reports that traders look
at and take into consideration when they trade. Notably, Citron
was most famous for its reports on “shorts,” which is when a
firm is essentially betting on a particular company failing.
Citron is a particularly famous short
seller and its founder, Andrew Left, was called
“The Bounty Hunter of Wall Street” in a 2017 New York Times
profile that described him as an “activist” short seller.

11. In 1993, geologists John Felderhof and Michael de Guzman convinced
Bre-X founder David Walsh to buy an area of land in the middle of the
jungle not far from the Busang River in Borneo, Indonesia. Bre-X had
been a penny stock, but as the estimated amount of gold at the site went
from 2 million Troy ounces to a whopping 70 million ounces a few years
later in 1997, the stock price climbed to $280 per share.
Bre-X Minerals Ltd. reached a market value of $6 billion. Of course, it
was all a hoax, spurred on by De Guzman manipulating (salting) the core
samples from the site. The discovery was a lie. -BusinessInsider.com

12. Hedge Fund
?
All
strategy

13. Sec Lending and Short
Position
Short selling is a strategy in which investors
borrow shares of a stock at a certain price in
expectations that the market value will fall below
that level when it’s time to pay for the borrowed
shares.

14. Melvin Capital had returns of 47%, ranking it 2nd in Bloomberg's 2015 list of
top-performing funds with $1 billion or more in assets under management.
In 2017, the fund finished up 41%. Current notable investments include
Chewy.com, Amazon.com, Las Vegas Sands, Alibaba, and GameStop.

15. The astronomical rally in GameStop has imposed huge losses of nearly $20 billion for short sellers this
month, but they are not budging.
Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-
and-mortar video game retailer, including a nearly $8 billion loss on Friday as the stock kept ripping higher

16. “Robinhood has completely BLOCKED
retailer investors from purchasing
[GameStop stock] for no legitimate reason,”
reads Nelson’s complaint.
GameStop ($GME) as well as AMC ($AMC), BlackBerry ($BB), Bed Bath & Beyond ($BBBY), and Nokia
($NOK)

17. GameStop short squeeze

18. Melvin Capital, the hedge fund that was wrongfooted by retail traders who
drove up shares in GameStop and other companies it had bet against, lost 53
percent in January, according to people familiar with the firm’s results.
The New York-based hedge fund sustained a $4.5 billion fall in its assets from
the end of last year to $8 billion, even after a $2.75 billion cash injection from
Steve Cohen’s Point72 Asset Management and Ken Griffin’s Citadel.
Hedge Fund
Vs
Public

19. How
?
Registered members submit content to the site such as links, text posts, and images, which are then voted up or
down by other members. Posts are organized by subject into user-created boards called "communities" or
"subreddits", which cover a variety of topics such as news, politics, science, movies, video games, music,
books, sports, fitness, cooking, pets, and image-sharing. Submissions with more up-votes appear towards the
top of their subreddit and, if they receive enough up-votes, ultimately on the site's front page. Despite strict rules
prohibiting harassment, Reddit's administrators spend considerable resources on moderating the site.[5]
As of February 2021, Reddit ranks as the 18th-most-visited website in the world and 7th most-visited website in
the US, according to Alexa Internet. About 42-49.3% of its user base comes from the United States, followed by
the United Kingdom at 7.9-8.2% and Canada at 5.2-7.8%
Reddit is a social news aggregation, web
content rating, and discussion website.

23. financial crisis of 2007–2008 was triggered by the United States housing bubble.
hedge fund manager Michael Burry discovers that the United States housing
market, based on high-risk subprime loans, is extremely unstable.
Anticipating the market's collapse in the second quarter of 2007, as interest
rates would rise from adjustable-rate mortgages, he proposes to create a
credit default swap market, allowing him to bet against, or short, market-
based mortgage-backed securities, for profit.
His long-term bet, exceeding $1 billion, is accepted by major investment and
commercial banks but requires paying substantial monthly premiums. This
sparks his main client, Lawrence Fields, to accuse him of "wasting" capital
while many clients demand that he reverse and sell, but Burry refuses. Under
pressure, he eventually restricts withdrawals, angering investors, and Lawrence
sues Burry. Eventually, the market collapses and his fund's value increases by
489%with an overall profit (even allowing for the
massive premiums) of over $2.69 billion, with Lawrence receiving $489 million
alone.
Michael Burry

24. Which one will you

26. #WallStreetBets
Founder
Jaime Rogozinski

27. Robert James Shiller (born March 29, 1946) is
an American economist (Nobel Laureate in 2013), academic, and
best-selling author. As of 2019, he serves as a Sterling
Professor of Economics at Yale University
George Arthur Akerlof (born June 17, 1940) is an
American economist who is a university professor at the McCourt
School of Public Policy at Georgetown University and
Koshland Professor of Economics Emeritus at the University of
California, Berkeley.He won the 2001 Nobel Memorial Prize in
Economic Sciences .

28. ATTRIBUTION
Internet
Movies
Wikipedia
Reddit