Reddit market mania fuelled by short sellers
Citron Research said it will discontinue offering short-sell analysis after 20 years of providing the service.
“We will focus on giving long side multibagger opportunities for individual investors,” the firm said Friday in a tweet.
Citron made the decision after battling with day traders over GameStop Corp. Earlier this month it suspended a scheduled live stream aimed at explaining its position on the company due to “too many people hacking Citron twitter.”
Citron managing partner Andrew Left told Bloomberg at the time he was informed by Twitter that someone was trying to change his password. Twitter said it locked Citron’s account as a precaution and worked with the account owner to get it reinstated.
Following the attempted live stream, Left eventually posted a YouTube video where he explained his five reasons why GameStop is going to US$20, maintaining the call on the company first made Jan. 19.
“I’ve never seen such an exchange of ideas of people so angry about someone joining the other side of a trade,” Left said in the video.
The stock has since surged, along with other heavily-shorted equitieis, as retail investors have piled in. That’s inflicted damage at some of the world’s most prominent hedge funds.