Us stocks are crazy! Game station retail investors "kill" institutions triggered a chain reaction of retail investors "hugging" one crop after another!

A big rise in the empty bid of several Melvin zuo

The war of the century for retail investors in the game post is still going on, and has triggered a series of chain reactions. As Melvin Capital suffered huge losses in shorting the game post station, there was speculation that Melvin Capital might close its short positions with other companies, and more than Melvin zuo short marks rose sharply on Wednesday.

German drugmaker Evotec rose as much as 30% on Wednesday, battery maker Varta rose more than 12% at one point, and Polish video game company CD Projekt rose more than 14% at one point, and the shares of the three companies had fallen as of press time. The shares of all three companies have risen more than 10 per cent in the past two trading days.

Short positions in Evotec, Varta and CD Projekt are 6.2 per cent, 4.35 per cent and 1.05 per cent, respectively, according to German and Polish regulatory filings.

Melvin Capital, founded in 2014 by Gabriel Plotkin (Gabriel Plotkin), is one of the best-performing hedge funds on Wall Street in recent years, with assets of about $12.5 billion at the start of the year, but lost a lot of money shorting PlayStation.

Hedge fund giants Citadel and Point72 Asset Management announced on Monday that they had invested $2.75 billion in Melvin Capital after big losses at Melvin Capital. Melvin Capital is likely to receive an additional $1 billion from other investors on February 1st.

Melvin Capital unwinding Game Station

Melvin Capital failed to hold up after a huge loss. Fund manager Gaby Plotkin (Gabe Plotkin) told the media on Wednesday morning that Melvin Capital had closed its short position in the game station on Tuesday afternoon local time.

Melvin's losses could not be confirmed, but Plotkin told CNBC that speculation that Melvin would file for bankruptcy was false.

According to the latest data from S3 Partners, game short sellers have lost more than $5 billion, including $917 million on Monday and $1.6 billion on Friday.

Driven by a frenzied push by retail investors, the game station soared 700% in the year alone, rising more than 100% before trading on Wednesday. By Wednesday's close, the company's shares were up 134.84% at $347.51, nearly a hundredfold from last April's low of $2.57.

Although Melvin Capital has surrendered, on a larger scale, American institutions may not be so easy to throw in the towel, there are still a lot of investors who are still short, and as share prices move further away from fundamentals, more fresh short blood will join in.

Investors also need to be aware that US regulators may take practical action in the future. Massachusetts Secretary of State William Calvin (William Galvin) has warned that game stations are being monitored and that there are systemic problems with options trading in the stock.

At one point, the AMC cinema chain soared by more than 300%.

Retail investors in the United States are hugging groups crazily, and the "air-forcing war" between retail investors and institutions is repeated again. This time AMC, the world's largest cinema chain, has become a target, and the short market continues.

As of the close, AMC cinema chain soared 300.81%. Although AMC cinema has recently ushered in some positive results, the increase in the share price has clearly exceeded the reasonable range.

It all started on Monday, when AMC announced that it had raised $917 million before trading, and the new liquidity would allow it to continue to operate without having to resort to a bankruptcy filing. AMC closed up 25.93% on the day.

In theory, financing only means that AMC theaters are temporarily out of the bankruptcy crisis, but the impact of the epidemic on the film industry will continue for a long time, and AMC theaters still have many challenges ahead, so the increases of 26% on Monday and 12% on Tuesday are reasonable.

But the news on Wednesday rekindled the frenzy of retail "huddling"., B. Riley FBR raised its target price for AMC from $3.50 to $5.50, maintaining a neutral rating. AMC then soared by an astonishing more than 300%, and its share price soared to $20, well above the target price given by B. Riley FBR.

It is important to note that, B. Riley FBR also specifically reminded that the North American box office is not expected to fully recover until 2023. However, crazy retail investors, regardless of the fundamentals, once again staged a "game post" crazy hug.

A number of popular European short marks rose hand in hand.

At a time when the US stock market has been in full swing to attack short capital, a series of stocks with the highest proportion of short sellers in a series of European stock markets have also seen sharp price fluctuations, showing signs of a collective retreat of professional short sellers in global stock markets.

Naturally, the first to bear the brunt are stocks directly related to Melvin Capital (the main short party in the game post incident). Evotec, the German drug company, rose as much as 30 per cent at one point on the Frankfurt Stock Exchange on Wednesday, closing up 9.6 per cent. Melvin Capital holds a short position that accounts for about 6.2 per cent of Evotec's outstanding shares.

Melvin Capital also took a short position at 4.35 per cent of the outstanding shares of Valta (Varta), a German car battery maker, up 6.2 per cent on Wednesday. Polish game developer CD Projekt, which is also on Melvin's zuo empty list, also rose 5 per cent.

In terms of the overall market trend, many stocks that have nothing to do with Melvin Capital but are also shorted by heavy positions also have a linkage effect, and it is clear that "forcing short" has become a very effective trading strategy in global capital markets recently. Michele Pedroni, fund manager of Decalia, a Geneva-based fund manager, said that many funds needed to cover short positions, superimposing the increasing proportion of quantitative transactions, which jointly contributed to the "snowball" effect.

Carson Block, founder of global well-known short positions, confirmed in an interview on Wednesday that the company had closed most of its short positions on Monday and dodged the bullet.

Of the 12 stocks with the highest proportion of short sellers in Europe, British publisher Pearson rose 13.97 per cent on Wednesday, Cineworld, a cinema chain, rose 9.93 per cent, French commercial real estate company Unibail-Rodamco rose 19.87 per cent and Ambu, a Danish maker of medical devices, rose 23.61 per cent, according to IHS Markit. The only exception is that Premier Oil, a British oil company with the highest proportion of short sellers in Europe, seems that even if it is a short strategy, investors will still have certain requirements for hype.