Billionaire Carl Icahn is betting against ‘Gamestop’ stock. Will he become the next victim?

Billionaire investor Carl Icahn has started betting against GameStop Cor stock, which was the reason for hard losses for hedge funds during the height of the craze for M shares, a stock group popular among individual investors in 2021.

But Icahn still owns a large share of the short-selling options at the retail store, Bloomberg and Al Arabiya reported, citing reviewed it.

Sources said Icahn began building a “short position,” or what’s known as a short bet, when Gamestop was trading near its $483-per-share peak and still held a big bet on the stock.

Icahn maintains his negative view of the stock and has reinforced his negative bet over time in time, as he sees opportunities for the stock’s continued decline.

Shares of GameStop fell 8.8% on Monday to close at $25.16, giving the retailer a market cap of $7.7 billion.

This happens while quest’year the gaming company carried out a stock split of 4 shares per share, in which has lost about 71% of its value since its highest closing level in January 2021.

And “Gamestop” became a nickname for the so-called “me” shares, when individual investor forums battled hedge funds during the Corona virus pandemic, with the help of apps of trading that charge no fees, as well as financial stimulus programs from the US Federal Reserve that have increased liquidity in the stock market.

Individual investors, comparing to each other on Reddit forums, poured money in Gamestop in a bid to burn money managers betting against the retailer.

The effort, known as a “short squeeze,” resulted in major losses for investors holding bearish bets on the stock.

That included Melvin Capital, which collapsed completely last May despite bailout plans from a group of investors to help it close its open positions in the stock.

Currently, according to data compiled by S3 Partners, more than one-fifth of GameStop’s available stock is in the open, more than double the level seen in this time last year.

However, the number remains far from the levels that ignited individual investors’ war on hedge funds in January 2021, when the percentage of shares sold short in at that time it amounted to about 140% of the shares available for trading.

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