The hedge fund Melvin Capital is one of the first victims of the revolt of individual speculators against the “wolves of Wall Street”. The fund, which bet on the bursting of the speculative bubble around GameStop, was saved from the debacle by two large American hedge funds.

The soaring GameStop sparked the downfall of hedge fund Melvin and its bailout by two Wall Street heavyweights, Steve Cohen and Ken Griffin.

The “big cats” of the hedge fund world, Steve Cohen (Point72) and Ken Griffin (Citadel LLC), took advantage of the setbacks of the hedge fund Melvin ($ 12.5 billion in assets at the start of the year). This fund was already losing more than 30% in January, with a risk of closure if its customers were to leave it, according to the “Wall Street Journal”.

The two hedge funds will invest $ 2.75 billion in Melvin and prevent him from a probable debacle. Citadel and its associates will invest $ 2 billion and Point72, $ 750 million. The latter was already invested to the tune of a billion dollars in Melvin, founded by Gabe Plotkin, a former manager of SAC Capital, the first hedge fund of Steve Cohen, a fund involved in a vast case of insider trading. Point72 is a fund heavily invested in three sectors, information technology, health and consumer goods. Among its top 10 investments are Amazon, Alibaba, Alphabet, Facebook, PayPal, Palentir and Dell.