Chamath Palihapitiya defends WallStreetBets GameStop short squeeze

The GameStop Corp (NYSE: GME) saga has brought the world’s attention to the ethics of hedge funds and their ability to short businesses into oblivion. On the other hand, it has also awoken Wall Street to the immense power communities like WallStreetBets on Reddit can wield. The debate continues to heat up over whether retail investors or hedge funds are in the wrong.

Don’t hate the player, hate the game

Hedge funds, Melvin Capital Management, and Citron Research have experienced substantial losses over the last few days as they covered their losing Gamestop short bets. As reported in Business Insider, Melvin Capital required an injection of capital from other hedge funds, totalling US$2.75 billion, to bail out the fund. Melvin…