Citron Research, a well-known short selling organization, announced that it will no longer short GameStop (GME). However, according to the statement, this decision is based not on the company's fundamentals, but on the institution's respect for the irrationality of the market.
Citron Research said in a statement: “Citron is no longer shorting GME. This is not because we believe a turnaround in the company's fundamentals is imminent, but because with $4 billion in the bank, they have enough leeway to appease their cult-like shareholders.”
Although Wedbush set a target of $11 today, Citron explained that it chose to respect the market's irrationality. “Ultimately, Dogecoin remains a $20 billion asset,” the institution said, pointing to the unpredictable structure of the market.
Andrew Left, founder of Citron Research, said he opened a short position on GameStop again last week, but his position was “significantly larger” compared to 2021, when he had to close his position after individual investors came together in online forums, carried out a spectacular rally in the stock and squeezed hedge funds. He said it was low.
*This is not investment advice.