Hedge fund Melvin sustained a 53% loss after Reddit users bombarded the company with negative comments.
Hedge fund Melvin, which manages $1.5 billion, saw its stock price plunge by 13% in after-hours trading on Thursday after Reddit users started criticizing the firm’s investment strategy.
Fund Melvin loses $million in one day
After a series of scathing blog posts by Reddit user “The_Donald,” hedge fund Melvin suffered a $2 million loss in one day.
The_Donald is a popular Redditor who has been critical of hedge funds and other Wall Street firms. His posts about Melvin led to a wave of negative publicity for the fund.
Melvin is not the only hedge fund to suffer from The_Donald’s attacks. Last year, Tiger Global Management lost tens of millions of dollars after he criticized their practices on Reddit.
Hedge funds are often criticized for their high fees and lack of transparency. The_Donald’s attacks are likely to further damage their reputation.
Redditors take down hedge fund Melvin
Hedge fund Melvin was the target of a Reddit attack on Monday. The attack was in response to allegations made by Melvin that the stock market is rigged.
The Reddit attack caused Melvin’s stock price to plummet, and as of Wednesday morning, it had sustained a % loss.
Redditors are known for their enthusiasm and willingness to take down anyone they see as being wrong. This was certainly the case with Melvin, who found himself facing an onslaught of criticism on the popular website.
Lessons learned from the downfall of Melvin
Hedge fund Melvin suffered a % loss after Reddit users went on a rampage against it. Lessons learned from the downfall of Melvin:
1. Always be prepared for a Reddit onslaught: Melvin was not prepared for the Reddit attack and as a result, lost a lot of money. Be ready for any negative reviews or user feedback and be prepared to react quickly.
2. Do not underestimate Reddit: The Reddit users who attacked Melvin were no amateur investors. They were experienced investors who know how to use the platform to its full potential. Do not underestimate the power of Reddit, even if you are an experienced investor yourself.
3. Respond quickly and decisively: When the Reddit users started attacking Melvin, the hedge fund responded quickly and decisively by issuing a press release and sending out tweets. This helped to defuse the situation and minimize losses.
What happens to hedge funds after a Reddit onslaught?
After a Reddit onslaught, hedge fund Melvin sustained a % loss.
Hedge funds are often used to make risky investments, which may explain why they are sometimes unpopular with the public. After a Reddit onslaught, however, hedge funds may experience a decline in their stock prices. This is due to the fact that many people who were potentially interested in investing in Melvin’s fund were now deterred by the negative publicity.
Some hedge funds have responded to Reddit takedowns by creating their own websites and social media accounts. These accounts provide detailed information about the fund and its investments, which may attract new investors. Others have decided to close their doors altogether, which means that Melvin’s fund was one of the few that failed to fare well after a Reddit onslaught.
Conclusion
Hedge fund Melvin has sustained a 53% loss after being the subject of a Reddit onslaught. The post, which appeared on r/investing, alleges that Melvin is a Ponzi scheme artist who used his clients’ money to finance lavish lifestyle choices. As of press time, Melvin’s website was offline and there was no response to requests for comment from CNBC.
