Melvin Capital, the hedge fund hurt by GameStop, said to wind down

Melvin Capital, the hedge fund that was pummeled by the GameStop (GME) quick squeeze final yr, is alleged to plan to wind down .

Melvin, run by Gabe Plotkin, plans to close down and return money to traders, in accordance to media studies from Bloomberg and CNBC.

The information comes after studies final month that Melvin was going to attempt to salvage the fund by beginning a brand new fund with the cash his traders determined to reinvest, although the plan was nixed after getting unfavourable suggestions from traders, in accordance with media studies.

The Melvin fund was down 23% by the top of April, in accordance with reporting from CNBC’s Leslie Picker.

The WSJ reported in February that hedge fund Citadel LLC, which gave Melvin Capital about $2B when it was struggling from its quick guess on GameStop (GME) final January, was once more paring its funding within the fund.

Bloomberg reported in March that Steve Cohen’s Point72 deliberate to redeem its funding in Melvin Capital in increments over time.

Recall final January Melvin Capital misplaced 53% in January on dangerous trades like GameStop (GME).