GameStop’s stock-buying frenzy left some big money-makers holding on to the bag, while lay investors managed to make huge sums in the market movement driven by Reddit.
Cohen’s hedge fund, Point72, recently joined Citadel, which invested $ 2.75 billion in Melvin Capital, another hedge fund.
Melvin Capital took a huge short position on GameStop, placing it in the unenviable position of having to buy the shares back at absurdly inflated prices. Cohen helped bail out Melvin Capital after it suffered heavy losses in the attempt to short sell.
Concerned Mets fans asked Cohen if his potential losses would affect the baseball team’s payroll.
Mr. Cohen seemed unconcerned and prompted Reddit investors.
“Why would one have something to do with the other?” Cohen asked.
He later noticed the abuse he was suffering on Twitter, calling it a “difficult night”, but he continued to incite Reddit investors.
“Hey, bag jockeys, keep bringing.”
On Thursday, Cohen was answering questions with investors after Robinhood prevented traders from buying more GameStop shares.
In response to Dave Portnoy, the owner of Barstool Sports who was furious at Robinhood’s decision to stop trading on his platform, he said he was just trying to make a living like anyone else.
“Hey, Dave, what’s your problem with me. I’m just trying to make a living like you. I’m happy to take it offline,” he said.
Mr. Cohen is worth more than $ 14 billion.
Across the corridor are lay investors who have managed to guarantee considerable returns on their investments thanks to the GameStop stock frenzy.
The New York Times talked to Pablo Batista, a former line cook who started to follow the subreddit that drove up stocks, WallStreetBets.
Since starting to trade, he has managed to turn $ 4,000 into $ 67,000.
According to Mr. Batisa, he made $ 11,400 in his investment in GameStop.
“At this point, I’m kind of overwhelmed,” he said. “It’s ridiculous. It’s crazy.”
Congressman Alexandria Ocasio-Cortez called for an investigation into Robinhood’s decision to stop buying GameStop and other titles promoted by the Reddit forum.
At the same time, a class action lawsuit against Robinhood was filed in the southern district of New York.