The GameStop stock drama has been the buzz all over the financial world in recent days and somehow, the New York Mets, have found a way to be involved.
Without getting too much into the weeds, essentially a bunch of Redditors noticed the GameStop stock was being heavily shorted, meaning investors are betting on the company’s stock to fall, with plans to buy it back up when it sinks to a lower price and profit off of the drop in price.
The Redditors decided to act together and buy up the stock in an attempt to basically screw over the investors who are shorting it.
A full, more detailed explanation of what is going on can be found here.
So, how does this involve the Mets?
New owner Steve Cohen’s hedge fund, Point72 Asset Management, invested $750 million alongside a $2 billion investment from Citadel into Melvin Capital – which held a short position on the GameStop stock and suffered huge losses before closing out of the stock by Wednesday morning.
Basically, the Mets owner helped bail out a hedge fund that was being impacted by these investors on Reddit.
Cohen even chimed in on Twitter about it.
Of course, Mets fans have been through Wall Street schemes before. The Wilpons were connected to the Bernie Madoff Ponzi Scheme which likely hamstrung the team’s ability to spend big on players and compete for free agents.
The hope is that Cohen and his $14 billion net worth could change that, so, some fans were understandably worried that his involvement in this saga could adversely impact the team.
But Cohen seemed to put those concerns to rest.