I wonder how they expect to make that money back? That's a huge hole to dig out of, but not the first time a hedge fund has blown up.
If Mudrick would have kept his mouth shut about the short campaign, his fund probably never would have been squeezed so hard and this story never would have happened. The decision to openly flaunt his position on social media aggravated a lot of people who were already angry. This was a big reason why the whole thing happened. Forum users believed they were "sticking it to the man", and what better target than a billionaire talking negative about a zombie company that hundreds of thousands thought was the ticket to paradise.
Sometimes those short campaigns work out, but a lot of times they do not, but you don't see them marketed as prominently online as you once did. Nowadays, it's mostly penny Chinese stocks nobody cares about anyway.
The irony in this story is the amount of profits this brought to trading desks that made markets. They were the winners. The losers in this story are the ones who are still holding on, and have significant amounts of money tied up in AMC and GME thinking there will be some kind of turnaround that tests the all-time high.
There is a "where are they now", article in today's WSJ where one person said he lost it all, one has significant money in GME (sounds like underwater or breakeven) and hopes to pay off student loans and buy a house with the stock, and another couple that owns 198 shares and "feels good about the company".
