Melvin started the year with about $12.5 billion and is now looking at a total of a little more than $8 billion (that includes $2.75 billion in emergency funds from Citadel LLC and and Mr. Cohen’s Point72 Asset Management).

Melvin has massively de-risked its portfolio saying its leverage ratio was the lowest it has been since Melvin’s 2014 start. New and existing clients have signed up to invest money into Melvin on Feb. 1.

The trouble for Melvin started when it took a short position in GameStop Corp. Reddit users on Wallstreetbets banded together on both sides of the Atlantic to send the stock soaring. However its losses extended beyond GameStop, with declines coming throughout its portfolio during a period of market turmoil in January.

Reports from traders say that as retail investors pushed GameStop first past $30 then past $75 and higher that managers began to lose confidence that short positions would stop rising in value and covered heavily shorted names.

“The performance pain…has been record breaking,” read a note from Morgan Stanley.

Bed Bath & Beyond Inc., GSX Techedu Inc., and National Beverage Corp. were up 78.4%, 62% and 99% at their intraweek highs last week, respectively. Meanwhile, Booking Holdings Inc. and Expedia Group Inc. were down 9.9% and 13.4% at their intraweek lows.

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