News > The Big Short: GameStop Effect Puts Global Bets Worth Billions At Risk

The Big Short: GameStop Effect Puts Global Bets Worth Billions At Risk

Global bets worth billions of dollars could be at risk as amateur share traders challenge the bearish positions of influential funds, inflating stock valuations and leaving the professionals looking at potentially hefty losses. Gone are the days when bruised retail investors fled after prominent hedge funds bet against a stock — the GameStop effect is rippling across U.S. markets and spreading to Europe.

Melvin Capital Management also closed out a short position against GameStop at a 100% loss.