Citadel Loses Billions: Hedge Funds Are Getting Dragged Down
Hedge funds such as Citadel and Melvin Capital have lost billions of dollars, and fast.
They’re shorting a stock that is no longer on the brink of bankruptcy.
This company is AMC Entertainment and it’s revival is thanks to the millions of retail investors buying the stock.
Citadel is one of the largest hedge fund managers in the world.
And they’ve subsequently managed Melvin Capital to the ground.
Melvin Capital suffered a loss of over 50% its first quarter in 2021 due to shorting AMC Entertainment and GameStop.
At some point you’d expect your clearing house to raise awareness on your risk management right?
When you manage a group of hedge funds, you are responsible for the companies success, and failures.
What’s even more mind boggling is that short sellers continue to go against the tide despite suffering billions.
Citadel might just end up bankrupting some of its partners.
Welcome to Franknez.com – the blog that protects retail investors from FUD media. Today we’re discussing Citadel losses.
Let’s get started!
AMC retail investors now have the lead in this war versus short sellers.
Newcomers are joining subcommunities and doing some detailed digging themselves.
Bigger personalities are talking about AMC Entertainment’s once in a lifetime opportunity.
What collectively started out as a small community back in January is now becoming mainstream.
There’s no going back.
This group of retail investors only know forward.
CNBC shames short sellers
CNBC’s Jim Cramer has publicly thrown short sellers under the bus in a recent video disusing the power of the retail investor community.
“Anyone shorting AMC or GameStop is out of their mind. Wallstreetbets is too powerful, and trying to bet against them right now is just giving them more ammo”, Jim Cramer.
While you’re not wrong Jim, retail investors within the AMC community are known as apes, not wallstreetbets.
Jim Cramer is the host of Mad Money on CNBC and is a former hedge fund manager.
Investors shorting AMC and GameStop stock are estimated to have lost $754 million on Tuesday 5/25 of last year alone, via ORTEX.
ORTEX Short Interest Data Software
ORTEX is a software that provides the most timely and accurate short interest available.
They provide users with intra day and historical data for days to cover, shares on loan, utilization rate, cost of borrow and free-float on loan.
More hedge funds under Citadel’s management will be incurring loses very soon if they haven’t already.
AMC Entertainment and GameStop stock are just getting started.
When Citadel needs capital to cover positions, who do you think they’re going to collect it from?
They’ve already liquidated accounts in both the stock and crypto markets. Up next, the hedge funds they manage.
“The sharp price increase can cause short position holders to try to close their positions by buying back the shares, causing additional demand which in turn can cause the share price to go up further.”
Peter hillerberg, co founder of ortex
Recently, hedge fund losses have amounted to more than $100 million on GameStop alone! This news was reported as of August, via WccFTech.
And although new hedge funds are taking short positions in both AMC and GameStop, I’m confident saying hedge fund losses will continue to skyrocket as more retail investors buy and hold these stonks.
Related: Short Interest Updates for AMC, GME, MULN, BBIG + more
AMC Entertainment defies Wall Street analyst predictions
AMC Entertainment’s stock is up more than 1,900% since January.
A Wall Street analyst by the name of Rich Greenfield predicted AMC’s stock price would come down to $0.01 back in March of 2021.
AMC is currently trading around $14 today.
The Wall Street analyst was last seen blocking members of the AMC community online via.
Twitter after the humiliating prediction .
He has since made his profile on Twitter private.
Related: Anchorage Capital closes after betting against AMC stock
Retail investors now own 80% of AMC Entertainment
Approximately 3.2 million retail investors currently own AMC Entertainment stock.
AMC Entertainment is the most traded stock in the market at the moment. New retail investors want a piece of the action.
While older members of the AMC community, known as apes, have gained massive profits recently, they continue to hold their positions.
As more retail investors discover that AMC has the perfect set up for a MOASS (mother of all short squeezes), hedge funds will subsequently lose several more billions of dollars in the coming weeks,
New retail investors buying the stock will have a lot to catch up on.
However, it won’t be very difficult.
AMC’s community is very unified and you can find help from individuals at any given time as well as DD (due diligence) from yours truly, Trey’s Trades, Roensch Capital, and ReviewDork to name a few.
AMC’s market cap: $426M to $7.65B (2021-2022)
AMC Entertainment’s market cap has grown immensely since the start of 2020 up until now.
The company’s market value has skyrocketed from $426 million in 2021 to $7.65 billion dollars in 2022.
The truth is people want to keep the movie theater business alive.
Retail investors are sticking it to the man who celebrated the economy collapse of 2008.
All while taking the opportunity to make a life changing trade as AMC Entertainment boils for a short squeeze.
This AMC movement is more than just about making money now.
It’s about the power of unification, and the strength to fight corruption in our nation.
Read: How do hedge funds manipulate the stock market
Citadel Losses in 2022
Citadel has recently taken private funding from Sequoia and Paradigm.
The hedge fund received a $1.2 billion lifeline, something they’ve never done before.
Clients have also been given an ultimatum, making it nearly impossible to return should they leave.
Things aren’t looking so great for Citadel in 2022 as scrutiny grows within the retail community.
Retail investors continue to fight for a fair market demanding the SEC to ban dark pool trading.
In a recent and exclusive interview with Bloomberg, Gary Gensler officially states 90%-95% of retail market orders are executed in dark exchanges.
A share recount threatens all short sellers
An AMC recount is a detailed investigation into who owns AMC Entertainment stock.
An AMC share recount will also expose how many illegal synthetic shares have been generated from naked shorting.
This process could last up to a month.
This process coming from a companies upper management could lead the SEC to take more serious action.
A margin call would force hedge funds and short sellers to close their positions resulting in astronomical loses.
For the retail investor holding AMC? A short squeeze.
Read: Deputy Global Treasurer resigns from Citadel
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Read: AMC margin call: the squeeze is inevitable
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Read: AMC short squeeze price: Expectations vs Reality
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Show CommentsDD checks out. Buckle up, boys!
It was time for this revolution to happen. Wall street and its cronies, the hedge funds companies and big banks like bank of America with their CEO have been a major problem to small retail investors. Those folks are so greedy and even believe that all the wealth of America only belong to them. Now, the apes nations, we are stopping that madness. Not only we are going to win that fight but also those hedge funds and Bank of America are going to go bankrupt. It was too long overdue. I found their behavior totally abusive and extremely irresponsible. I asked myself many times why a small group of bandits could keep 80% of us down as hostage. The stock market is not the hedge fund’s private property. We must resit it at all cost and send them a clear message that the American dream or the wealth of the United states belongs to everyone but not only to them or kids or their own gangs.
https://www.cnbc.com/2021/10/04/ken-griffins-citadel-flagship-hedge-fund-returns-8percent-in-september-during-market-sell-off.html
[…] If you bank with Bank of America chances are they’ve been using your hard earned money to short AMC stock. Financial institutions have been shorting AMC stock all year, resulting in billions of dollars in losses. […]
Let’s count them. Illegal is illegal and Hedge funds are not above the law. If they did it, make them pay. Same as cooking the books in my opinion.
“beating on chest” Ape no hurt ape. ape weak alone but together strong..