Jim Armitage, 04 February 2021
A highly regarded short-seller has written a heartfelt defence of his breed to US senators investigating hedge funds’ role in the Reddit GameStop saga just before shares in the company fell a further 35% Marc Cohodes’ lawyer has written to Senators on the senate committees on Banking and Home Affairs about GameStop to declare: “The share price was not manipulated down; it was manipulated up.”
Some politicians have jumped on the story to attack short sellers and defend the retail investors who drove up GameStop’s shares. The stock rose stratospherically, costing short sellers billions. But they subsequently tumbled and today lost a further 35%.