In the years leading up to 2022, Melvin Capital made bets against key stocks within the USA stock market, after retail investors noticed inconsistencies with the stock, specifically the huge short position that Hedge Funds (including Melvin Capital) had accrued. Retail traders realized that these positions would at some stage need to be bought back so they independently decided to buy up the stock.
Melvin Capital essentially went bankrupt due to some very poor decision making and lack of proper risk management.
The phrase "you did a melvin" was coined in 2022 to indicate that your lost money, or made bad decisions which affected you negatively.
Melvin Capital essentially went bankrupt due to some very poor decision making and lack of proper risk management.
The phrase "you did a melvin" was coined in 2022 to indicate that your lost money, or made bad decisions which affected you negatively.
by !Gary Gensler August 17, 2022