Welcome back to the channel everyone today, i want to talk about how melvin capital is absolutely done for and how melvin is toast, but there may be a slightly more nefarious reason as to why melvin has been losing so much money so stay tuned and let's make Some money, and now i'm gon na dive straight in with the information so melvin capital yesterday lost 86 million dollars in four minutes on one singular investment, and since december 31st, they've lost 190 million dollars on their snow position. In the after hours yesterday, snow released their earnings and the stock fell from 264 dollars per share down to 188 dollars down 30. In the after hours alone, snow is melvin capital's, ninth largest investment, where they hold 1.43 million shares. No also isn't the only position where melvin has faced substantial losses over the last few weeks.

Melvin also owns a firm facebook, snapchat and many others just like b-u-r-l again, b-u-r-l was another position last night that got destroyed after its earnings down 10 in the pre-market. This morning, in the last few months, there's only a few positions where melvin hasn't taken on substantial losses and that's their positions in hilton, hayat, marriott and lyv. Pretty much every single other stock that they hold is down between 10 and 30 percent over the last two months, with some positions like facebook, snapchat, firm and snow down. Much more substantially.

Now, interestingly, rocket and peter han have some thoughts on the situation. Rocket said serious question: did melvin pick all of the wrong positions or is melvin being liquidated in silence, and he asks is melvin soon to cover their short positions, because obviously, the last short hedge fund holding their bag of amc shorts will likely end up being liquidated. The funds that make it to the exit door first and bail on their short positions will likely survive not being down too substantially, but those hedge funds that tried to hold on to their short positions will most likely be liquidated during the squeeze and peter says, it's Amazing to see how many bad trades melvin has recently been seen doing, he expects yes, it's being used as a dumping ground for other firms, bad trades, but peter says i'm curious as to what gabe plotkin has been promised to look so stupid and to take on So many bad investments, it seems that gabe plotkin is basically the designated bag holder for all of the amc shorts and for many many bad positions, as he's been losing substantial amounts of money. Over the last few weeks, maybe gabe plotkin has been somehow secretly promised some form of immunity for taking on all of these doddy short positions like potentially what citadel gave to melvin and all of these dodgy long positions as well, sir robot added and said yep.

This is one of my thoughts too from this morning, i would tend to agree with this theory. They can't be that wrong in such a short period of time, especially with their entire risk management department, while melvin capital is a smaller hedge fund, much smaller than citadel. Any professional hedge fund has a risk management department and they tend to spread their risk and not bundle it all up. In the riskiest stocks possible.

Ken griffin wouldn't have called gabe plotkin one of the best investors in this time and lent him two billion dollars. If gabe was taking risky positions left right and center and had absolutely no idea what he was doing and had zero risk management personnel, he said it does sound weird that melvin made a lot of weird investments, including potential massive losses over the last few weeks. It's like they're gathering a lot of bad plays in their hands. He said it'd be fine to have done one two or maybe three bad decisions or bad plays over the last few weeks, but it seems like they've, made a lot of bad calls.

It was found that melvin were actually shorting activision before the announcement of the buyout by microsoft and then, when you add to that fact that citadel wants to redeem half of the money that they've lent to melvin he's asking himself melvin. What are you guys doing and therefore it wouldn't surprise me if, in the coming days or in the coming weeks, melvin ends up being liquidated and could potentially trigger the squeeze. So all in all, i think, melvin capital is absolutely toast. They lost a giant portion of their portfolio in 2021 and then followed that in january and february of 2022, by losing even more they've also lost out significantly on facebook, snow snapchat, a firm and a number of other stocks that have taken a hard dive over the Last few weeks it seems like citadel and potentially other funds have offloaded their rubbish positions, all of their amc and gamestop shorts and potentially other nefarious or illegal positions directly into melvin capital's lap.

I think those short hedge funds knew that amc and gamestop was going to squeeze at some point, so they designated gabe plotkin as the full guy everyone's offloaded. All of their rubbish positions directly to melvin he's gon na take the massive loss. Melvin capital will go under, investors will lose billions and billions of dollars, but maybe gabe will escape jail and a number of other hedge funds will survive as well. I think, even though dave plotkin may have struck a deal with the sec, the department of justice and the other hedge funds to spare himself from jail, i do think melvin.

Capital as a whole is absolutely done for, and the amc and gamestop are most definitely going to squeeze now. Interestingly, an apon reddit has also been doing some digging and he's determined that the 13fs for gamestop and also for amc are full of fake companies. Now many of you may not have a lot of confidence in the stock market at the moment. There's all of this market manipulation and market fraud.

That seems to be going entirely unpunished and that's why i personally also invest in crypto, especially during this big dip with blockfire. You cannot only invest in crypto, but you can also get up to 250 dollars in free bitcoin when you sign up to blockfy, using the link in the description below and make your first deposit. More than 500 000 people and 350 institutions globally use blockfy to manage over 10 billion dollars in assets with block 5 there's also, no minimum balance, and it's also a free account with no hidden charges and block fight also offers a rewards credit card with an introductory Rate of 3.5 cash back on your purchases also paid in crypto, there's also no annual fees, no foreign transaction fees either, but, unfortunately, the card is only available in the us and not in the uk or in europe, so guys be sure to sign up to blockfy Using the link in the description below to get up to 250 in free bitcoin, he said some of these companies have been started in 2022 and some of them aren't even registered they're. Holding gamestop puts and even amc perps as well and most of them are all registered in chicago now.

Obviously, this isn't guaranteed fact, as ken griffin isn't listed as the ceo for all of these funds, but he says i think i've figured it out citadel is making fake companies with fake positions to bag hold gamestop on amc for ken griffin himself. He starts by scrolling through to cmt capital markets trading, which has a 10 million dollar position on gamestop. He went over to broke a check, but cmt capital markets doesn't exist and was also recently started or recently founded in 2022. Now, if we scroll on over to amc, cmt, aren't holding any put positions at amc, but ctc llcr, they hold an 87.5 million dollar put position in amc and, interestingly, ctc stands for chicago trading company.

The next fund on the list - 683 capital management - has 27 million dollars of puts in gamestop. Again a search of broker check shows that 683 capital management doesn't exist. 683 capital management also has 182 million dollars worth of amc puts as well. Now, if we scroll down in amc, we've also got imc chicago that holds 77 million dollars worth of puts.

If we look at those puts that have been recently closed out, we can also see that wolverine trading llc recently closed out 1.2 million dollars worth of put positions which would have been equal to around 30 million dollars in puts and again wolverine trading is headquartered in Chicago as well now again, this could just be a massive coincidence that between five and ten individual hedge funds, all headquartered in chicago just down the road from ken griffin are all holding amc and gamestop puts, or maybe they could all be interlinked. And i also wanted to show you this video of actually sometimes just how easy naked shorting stocks can really be, but i just i think that they're living you know they're they're, all living in kind of a fake world um. You know, i would you know illegally naked short sale stocks every day every day, as long as i was collecting commissions and the bank did not care, the client will send you an order electronically. All you do, is you click on the order you go to execute.

It'll pull up a little box, you type in anything, you want and you just hit. Okay, you don't ask questions, you appreciate the order and that just goes to show that sometimes naked shorting stocks is actually incredibly easy, because no one cares. Maybe the bank that you work for or the hedge fund you work for they don't care the sec clearly doesn't care finra, the dtcc and everybody else also don't really care either as long as they're, not the ones being her. You may also say tom, who is tobin malsheen? What kind of background does he have and how can he claim to be a wall street bank veteran now? Actually, if you head on over to his page tobin mulching, was the vice president of morgan stanley.

He then also went to credit suisse and he's held a number of different positions in between all of those as well. Again, you also would have had more junior positions as well at different banks, because you don't start your first day on wall street as a vice president for morgan stanley and therefore, if even many of these big banks are also naked, shorting many stocks in the stock Market, i wouldn't put it past smaller funds like citadel and melvin capital to be doing the same guys be sure to. Let me know down in the comments below what you think about melvin capital being toast and absolutely done for and as always guys. If you enjoyed this video be sure to check out some of my others, alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted.

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