Melvin capital exited the short position two days ago, the loss is realized.
Edit: It was a company announcement material to the fund's prospects, if they lied it would be grounds for a securities fraud suit from their investors.
Sometimes the world is not a big conspiracy out to get you.
Sort of. Delta neutrality is a target, not a given. Gamma is what forces MMs to hedge. They have been absolutely steamrolled by gamma which would leave them massively net short when you’re facing 100-200% gaps.
I'm not saying they aren't shorted, I'm just saying it isn't Melvin. There are lots of people shorting GME when it's priced a large multiple of it's long term value. How this gets resolved given the giant short squeeze is another question. Certainly I wouldn't be brave enough to be on either side of the trade.
How convenient to let out a public statement that they exited the short… Gives them plausible deniability on claims of collusion with Robinhood by way of Citadel!
