So much for a calm 2021. January kicked off with chaotic markets as Reddit-inspired retail investors banded together to spark a rally in beleaguered stocks that were among the most-shorted in hedge fund land.
Now, details of the damage are coming in. Melvin Capital Management took the biggest known hit thus far, sinking 53% after its aggressive and leveraged short on GameStop Corp. Maplelane Capital fell 45% through Jan. 27, Bloomberg reported. Other funds have been dragged down by the resulting broader market havoc, while some firms managed to make money.