Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.
Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.
The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.
Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.
In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.
Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.
Let’s discuss it.
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CNBC mourns the loss of Melvin Capital
CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.
They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.
The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.
However, as things went south quick for Melvin, both hedge funds demanded the capital back.
Something Ken Griffin and his affiliates fail to mention.
Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.
Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.
Betting against companies with intention to bankrupt them to the ground is no charity work.
It’s un-American and a nefarious practice that has dragged out for too long.
Ken Griffin blames retail investors
In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.
Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.
But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”
Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.
Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.
AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.
Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.
While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.
For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.
Hedge funds should prepare for bigger losses
Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.
This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.
It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.
With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.
Massive selloffs in the market have proved just how distressed financial institutions are.
We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.
Retail investors have been the majority of buyers in today’s markets according to Bank of America.
Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.
As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.
Hedge funds have lost control.
But I’m curious to know what you think.
Leave your thoughts in the comment section of the blog below.
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About The Author
I didn’t sell my amc stock so now I’m responsible for teachers pensions losing money. I have been told all of my life I should save and invest and hold stock for the long term. So I have held amc since February of 21 and now I’m the enemy . And you know what , the majority of people who listen to Cramer and the other ilk believe this shit.
It really breaks my heart when I hear Ken Griffin whining about us apes destroying the pension plans of the corrupt teachers unions and other unions when I know he would not hesitate to put us retail investors out on the streets after fleecing every penny he could squeeze from our pockets. Boo Hoo! Screw you ken.
Go see who in Congress Ken “under investigation” For almost every crime Wall st can muster. A few weeks ago walks into Congress dropped off campaign donations and payments in Advance for Speaking Engagements of close 40 or 50mil and the other hedges who donated to re-elections of these Sewards of the American Taxpayers.
Be interesting to see who and how much Ken gave Then if it’s available Paymentsfor Future Speaking Engagement
Janet Yellen has 450k worth of Speaking Paid For in Advance? Is that to convince others the evils of the bittercoin!
If Melvin hadn’t tried to bankrupt struggling companies, then Melvin wouldn’t be bankrupt themselves ,karma need I say more.
It’s said there’s an end to hedge funds when they start up! It’s not if it’s when!!
Shorting has taken on a different level in today’s stock market. Every company has been shorted down and piled on. When I was a kid we used to play pile on . We would pick the weakest kid in school and then a bunch of us would just pile on him day after day. Then the kid on the bottom learns to fight right back and that’s what I feel is happening today , as the whole market is being piled on, not directly but also with with derivatives and sideways and over the top and so many different creative ways that were established by these hedge funds and major corporations. That’s why I’m holding AMC ,thousand of shares as they will survive, people are going out and want to be together socializing enjoying themselves watching a good new release. I all’s own AAPL & PYPL also Uber water due to shorting .No matter what happens to the market the economy people will always be social and they will pay a premium in these days for that but they will do it because that’s just human. What is happening in the market is not human it’s animalistic and it’s terrible that they’re getting away with it at this. Eventually I don’t know when but eventually it has to stop!!!!
The Death of Wall Street Cometh
Retail investors are pissed off about how these markets operate. Whichever way you look…whichever stock you own…there is unfair, unethical, illegal shit happening constantly. The SEC doesn’t care. The FBI doesn’t care. The Treasury Department doesn’t care. The US Government doesn’t care.
On the contrary. THE SEC, FBI, TREASURY, DOJ and Congress are all in bed with Wall Street elites. Crony capitalism is what the Central Governments of the world are fighting tooth and nail to protect. But their attempts to protect their wealth and guarantee their winning for the wealthy are causing our markets to plummet. Inflation is bullshit. The Coronavirus pandemic is bullshit. The war between Ukraine and Russia is bullshit. Higher gas prices…higher food costs…higher interest rates — nothing is scaring the HODL investor. After all, aren’t you all doing what the sage Warren Buffett has always advised? ***Buy (be greedy) when there is fear?***
The vast majority of stocks have no business being at the prices they are today. They are at 52-week lows only because corrupt firms like Shitadel and Fuckrock have connections to the elites and are doing everything they can to maintain…nay, FORCE the status quo. And what is that exactly, you ask? **To ensure that the wealthy 1% never lose to anyone in the 99%.**
I have 100% confidence that there are AMC investors here who are 1000 times smarter and more sophisticated than the average fuck who has “privileges” on Wall Street. And those Wall Street fucks have been doubling down no matter how much more the small investors fight to beat them. The game has gotten so lopsided and unsustainable that the fucking Fed has had to intervene. THE FED IS THE MOST CORRUPT ORGANIZATION ON THE PLANET. It’s legalized mafia, period.
Bottom line, the more Wall Street cheats, the more the retail movement grows. And if Wall Street bankrupts the market to get your money, they will have shot themselves to death in the process. Nobody in the world will trust Wall Street.
We go back up the hedge funds will go down , things are turning on them !
The law of Karma is catching up ⚖️
Great article again Frank. It is absolutely scandalous that Kenny Boy is blaming Retail Investors for the demise of Melvin. They were greedy and tried to wipe GameStop and others off the planet and they failed due to Retail. Citadel should be sent packing and hopefully will have to liquidate to cover its shorts and that would only correct a fraction of the damage to Retail and society over decades. How dare he accuse Retail who never set off to liquidate any company or hedgefund. Mind you doesn’t Kenny Boy look worried and looks like he has already lost – an outcome that we all know should happen and then be locked up for all his illegal activity.
Great input, Jeff – thanks for commenting brother 😤
I want to believe that we see the end of the tunnel. 🤞🏾
I guess Mr. Griffin thinks its ok to destroy millions of Retail investors and some Companies.
I don’t think Adam Aron and Ken Griffin will be on a double date anytime soon.
😤💯💯💯
I’d really think that Citadel crushed Gabe and Tiger out o business a day he WOULD have bought the debt and the accusations about Ken
Are causing a defense as to his actions. A year ago he was In charge. then people dug and let SEC know The People Exposed Ken
It’s sad he’s stolen so much we want the Constitution back and all the other loot
💥💥💥
“For years Wall Street tried to attract retail investors to the markets encouraging the public to invest in the stock market then when retail investors begin entering the market in larger numbers Wall Street started throwing a fit with negative headlines articles and bought accounts on social media or speaking negatively that someone invested in good stocks. Wall Street never ceases to amaze me and I think the increasing use of algorithms by market makers that double as hedge funds and other large financial firms are just another example of that l. ..think about this for a second ,the purpose of algorithms are to amplify trends and or create dislocations within the markets ,so for example a hedge fund could utilize algorithms to pump is stock price in order to entice retail traders to buy call options and then abruptly reverse the trend crash the stock then retail traders holding the bag and then the Wall Street hedge funds ( institutions)walk away with all of the premium they collected …fucking the retail investor once again ..this of course is only one hypothetical scenario which I think is true and presently the way it is now ,but I think it’s clear algorithmic trading by large financial firms poses a significant risk to the markets and especially for retail investors .Wall Street knows this and unfortunately the SEC is basically silent as all of this is happening .I’ve said it before I’ll say it again this is not a fair or transparent stock market not in the slightest and that’s exactly why we retail investors continue supporting our favorite company AMC here ,as we stand up for a free fair and transparent stock market accountable for their actions we want all of the retail investors orders to be routed directly to transparent exchanges rather than dark pools .And we want all investors to have access to the same real-time data from exchanges better private feeds which is currently only available only to Wall Street ultimate we just want to stock market that offers a truly level playing field for all investors !!! “
Quote from a smart man! Ken Griffin From Citadel securities is the main culprit in Shorting AMC and trying to put it out of business so go F yourself!
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