wall street pointed out that quote one hedge fund suffering amid the game stop surge was melvin capital management which another hedge for and citadel has since bailed out in these losses. citadels founders can grip and who also found it so they'll securities a big investor in robin hood up also works with t.d. ameritrade and charles robb the companies that were cutting these people out and saying you cannot buy game stop on our apps anymore. are companies that actually have connections to to melvin management who was losing money because of what was happening and it all comes full circle and i think that what this goes to show is that one there is the mechanisation behind all of this drive to shut people out and once they saw that so many people had gotten involved and engaged in that reddit had basically taken over to a certain extent and they were ready to stop it immediately and now you know these organizations as well as those who actually bought the stocks are calling on congress for 2 very different things one you know the the the stocks and sells there they just want this to get in the ind

have taken major hits due to the unanticipated gamestop activity, in particular, one called melvin capital managementf the stock. it has since been bailed out by other hedge funds. this chaos on wall street has heightened concerns for investors that a bubble within the stock market could be on the horizon. joining us now to try and help explain all of this is cnbc washington correspondent kayla tausche. kayla, good morning. thank you so much for being here. i am absolutely fascinated by all of this, and it seems like the folks on wall street were really taken by surprise and are angry about this. i think for regular people, they're looking at it and saying, well, you're kind of getting, perhaps, what you deserve, or at least, you know, you've been manipulating the market, as some people argue, and now you're having to deal with something you didn't anticipate. help us understand what's going on here and how investors have reacted to it. >> well, kasie, you mentioned the fact that these stocks are heavily shorted. that means that a large percentage of the stock that's available is currently being borr

melvin capital management had to be bailed out. had a large short position in gamestop.ers are getting hurt, too. not only because of these short positions but because the pain the shorts are creating is spreading through the market right now in some instances. we've had a very volatile week. an en abeler of this is robinhood that lets you by stocks, options, cryptocurrency for free and 13 million users, median age is 31. millennials. they get free stock. transactions are celebrated with confetti drops and robinhood makes netflix style recommendations. it feels like a casino when many people can't go to vegas to gamble right now because of the pandemic. what this platform is --ist is going up against the suits and establishment. there will be ramifications of all of this. the question in my opinion the business model of free trading is one reason robinhood and others had to put some limits on specific trading yesterday is because they needed to make sure they had enough money to carry out these trades. so it gets complicated. the decision to block some of those trades, b

so she received $810,000 from citadel for past speaking gigs, and citadel infused melvin capital managements raises the question should janet yellen, as treasury secretary, recuse herself from advising the biden administration on what to do about gamestop? listen. >> separate from the gamestop issue, the secretary of treasury is one of the world-renowned experts on markets, on the economy. it shouldn't be a surprise to anyone she was paid to give her perspective and advice before she came into office. [inaudible] lauren: yeah. so she's -- they're still talking about this. i do want to point out that in just a few minutes janet yellen will be in an economic briefing for president biden and vice president harris, and we're monitoring if janet yellen says something -- stuart: here we go. >> -- getting the american people back to work. go ahead. >> hundreds of white house staffers now have been vaccinated for the coronavirus. [inaudible] who would be covered by that, and also more broadly, because of that -- stuart: now, jen psaki has moved on to another subject here. she had been dealing with

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management wall street cried foul and warned the new investors about the danger of losing damn money in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it that i think that that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight. they're up to date on d.w. news up next our tech 19 shipped omarion and steam from me and the entire news team in berlin thanks for watching. it's about billions. it's about how the work. is about the foundation of the new world order the new silk road. china wants to expand its influence with this trade network. putting corrupt there's a short morning when for exception money from the.

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management the total damage to the hedge funds over $5000000000.00 wall street cried foul and warned the new investors about the danger of losing in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and that's when i put money into it i said even if this goes to 0. and i lose everything i like being a part of it and that cemented shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight that goliath might win after all under pressure trading platform robinhood which most game stop bias used has now limit to trading with the embattled shares sparking protests in the community and even on capitol hill. they were only given the option to sell and not given the option to purchase which would necessarily and or rather you know quite expectantly drive down the stock price you know i think these are things that are just calling a lot of attention and and as i mentioned earlier the financial services committ

among them high profile names like melvin capital citroen capital and point 72 asset management wall street cried foul and warned the new investors about the danger of losing delmonte in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and. when i put money into it i said even if this goes in 0 and i lose everything i like being a part of it and that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight the craziness continues as we close the trading week so here to help us take stock is the end score to our financial correspondent yes this has obviously been a huge story what's it actually done to the market you know well i mean we've definitely learned a couple of lessons for instance how vulnerable those some hedge funds are was their bets on falling stock prices or 5 soon that correctly since the beginning of the year those hedge funds have lost about $20000000000.00 and to cover some of those losses maybe they have been forced to sell other stocks and that might be

battle is emerging, yes, it is causing a really big headache for these hedge fund managers, specifically melvin capital, an easy one to see where the pain is. hey, they doubled down on their gamestop that. they got a cash injection from steve cohen's hedge fund, saying hey, this is us going against the establishment, more or less. gamestop shares are up more than 70% already premarket today, and we have seen other hedge fund favorites to short have also moved higher as well. some in europe, too. one of the biggest short positions that melvin capital has in europe. so the most popular shorts over the past few days have rallied 15%, and because it is getting more expensive now for those people to short them because of the collateral they will have to post with the higher prices of these hedge funds, we have also seen them start to suffer the idea, being that perhaps they are taking profit on some of their long positions to fund the wildness going on with this short. francine: to put into context, the rally of gamestop now exceeds 5500 members, pretty out there. what are these traders doing on reddit? fra

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point 72 asset management. wall street tried fall and warned the new investors about the danger of losing in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and that's when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it and that cemented shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight. they're up to date on d w news i'm marrying every steen family and the entire team thanks for watching. in the light of climate change. what's in store. for the future. for the major cities. inside clear picture. to go beyond. as we take on the world. we're all about the stories that matter to. whatever these men. may be on fire make for. the days were flying cars were a distant dream long gone today companies worldwide designing them so when will we be ready for takeoff oh a topic today on shift. boeing well start ups like germany developers across the globe want us to t

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management wall street cried foul and warned the new investors about the danger of losing in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it. thank you. that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight. to sports news out and german football and took our toasted minds in the bonus league friday night much the home team wore rainbow striped jerseys in support of diversity on and off the pitch it took stuttgart 55 minutes to get on the scoreboard. collide sick took the century past to head is in stuttgart went on to win it tonight. up in tennessee australian open has gotten a boost up to $30000.00 fans will be allowed to attend per day making it one of the largest gatherings at a sporting event since the start of the covert 900 pandemic ahead of the australian open loc

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management the total damage to the hitch funds over $5000000000.00 wall street cried foul and warned the new invest. about the danger of losing in the long run it turns out they already knew. that's what it is the regular joes versus wall street and. when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it and that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight that goliath might win after all under pressure trading platform robinhood which most game stop bias used has now limit to trading with the embattled shares sparking protests in the community and even on capitol hill. they were only given the option to sell and not given the option to purchase which would necessarily and or rather you know quite expectantly drive down the stock price you know i think it's i think they're just calling a lot of attention and and as i mentioned earlier the financial services committee is probably

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point 72 asset management the total damage to the hedge funds over $5000000000.00 wall street cried foul and warned the new investor. about the danger of losing damn money in the long run it turns out they already knew. that's what it is the regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight that might win after all under pressure trading platform robinhood which most game stop bias used has now limit to trading with the embattled shares sparking protests in the community and even on capitol hill. they were only given the option to sell and not given the option to purchase which would necessarily be an or rather you know quite expect that we drive down the stock price you know i think these are things that are just called a lot of attention and and as i mentioned earlier the financial services committee is

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point 72 asset management wall street cried foul and warned the new investors about the danger. or losing in the long run it turns out they already knew. that's what it is it's the regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it and that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight. 2 german football now and stuttgart hosted minds in the bundesliga friday night match the home team war rainbow striped jerseys in support of diversity on and off the pitch and they took stuttgart 55 minutes to get on the scoreboard sasha collides it took the century past to head it in stuttgart went on to win it 2 no. in tennessee australian open has gotten a boost up to $30000.00 fans will be allowed to attend per day making it one of the largest gatherings at a sporting event since the start of the covert 19 pandemic ahead of the australian open local authorities required

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management the total damage to the hedge funds over $5000000000.00 wall street cried foul and warned the new investors about the danger of losing in the long run it turns out they already knew. that's what it is is their regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose. everything i like being a part of it and that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight that might win after all under pressure trading platform robinhood which most game stop bias used has now limit to trading with the embattled shares sparking protests in the community and even on capitol hill. they were only given the option to sell and not given the option to purchase which would necessarily and or rather you know quite expectantly drive down the stock price you know i think these are things that are just calling a lot of attention and and as i mentioned earlier the financial services committee is proba

buying back shares to cut their losses among them high profile names like melvin capital citroen capital and point $72.00 asset management wall street cried foul and warned the new investors about the danger of losing demo knee in the long run it turns out they already knew . that's what it is is their regular joes versus wall street and when i put money into it i said even if this goes to 0 and i lose everything i like being a part of it that sentiment is shared amongst a lot a lot of people. so it's not only about money it's a david versus goliath fight. the craziness continues as we close the trading week so here to help us take stock is again score to our financial correspondent yes this has obviously been a huge story what's it actually done to the market. you know well and we have definitely learned a couple of lessons for instance how vulnerable those some headphones are was their bets on falling stock prices to 5 seeing that correctly since the beginning of the year those hedge funds have lost evolved to $20000000000.00 and to cover some of those losses maybe they have been forced to sell other stocks and that mi

you got great money managers like the hedge fund manager at melvin, who has been short a lot of this, probably has the ability to continue the excess capital to stay short but some can't and it will be fascinating to watch you pointed out with bed, baghdad and obviously we know that the issues that -- bed, bath and obviously we know the issues that amc has had to stay out of bankruptcy and here it is, not in some ways dissimilar that we saw from hertz this summer where suddenly they had the run and thinking about selling stock despite the fact that they were bankrupt. >> and the million dollar fundraising this weekend has been pulled off. >> and go for it, right? >> i think theoretically, you can take the stock up enough, and adam aaron, who is very clever, will recognize that this is an opportunity to sell stock. however, the younger investors, david, who are doing this, with the bet, have regarded offerings as being a sign of strength. >> i think you said that >> it's true >> no, i understand. >> and carl, again, when you see this buying, before the, you know, there was buying at 4:00 a.m. on this thing >> i followed 49: -- the 4:30 trad

that hedge fund melvin capital says that it has closed out its short position in gamestop i spoke to gabe plotkin who runs that firm. took a big loss, it's up clear precisely how big. managesition in a call earlier this morning saying he did that before th close yesterday. he also said that speculation that the firm would file for bankruptcy is false. that rumor going around reddit and on twitter and you can see shares of gamestop have come well off their highs from earlier today the stock ended yesterday at 92%. at around $150 a share then it soared this morning in the premarket to $360 before topping. yesterday, gamestop trading was accompanied by tweets from very well-known names on wall street. who were fanning the flames in truth. chamath palihapitiya reporting that he had purchased calls. and then getting out on twitter saying he was going long wit the stock. after the markets closed, elon musk tweeted simply "gamestonk." in reference to the stock. and the stock took off from there. i think with the responsibility that some of these players have in this as well. we've got a programming note you don't want to miss this, because palihapitiya is going to be live today,