For the nearly three months since he bought the Mets, Steve Cohen has been surprisingly vibrantly engaged to the banquet, with fans on the team on Twitter, entertaining his business suggestions and for the owner of a billionaire team He displayed a sense of humor and genuine interest in his ideas.
It all came to a crashing halt on Friday night, when Cohen deactivated his Twitter account and released a statement through the Mets in which he said his family received unspecified threats on the social media service. The move comes a day after Cohen’s hedge fund – and Cohen himself, though his Twitter account – were fired in a toxic rich-versus-poor fight at struggling video-game retailer Gamestop.
“I’m really enjoying the back and forth on Twitter with Mets fans who unfortunately went wrong this week.” So I’m going to take a vacation for now, Cohen said in a statement.
Well, it was a forecast and a proper ending to Steve Cohen’s Twitter experience. pic.twitter.com/R5hU8V31Ha
– Jared Diamond (@jareddiamond) January 30, 2021
Misinformation and personal threats appeared not to be related to Cohen’s ownership of the Mets or their online ban about the team, but for their connection to dirty trading in Gametop stock.
Earlier this week, an undisclosed but over-sized small investor was killed in a frenzy in places like Reddit’s WallStreetBets platform, in an attempt to punish deep-pocketed investors who took part, a partially struggling video The stock price of game retailer GameStop was increased. Bet that its value will fall.
- The shares of Gamestop, the video game retailer, have risen as amateur investors embarking on Reddit have placed heavy bets on the company’s shares.
- The wave gained momentum in response to the sale of large hedge funds. Gametop stock sales – Originally they were betting against the company’s success.
- Sudden demand has reduced the share price from $ 20 in December to about $ 300 on Monday. On paper, anyway.
- It’s not just GameStop. Amateur investors have supported other companies that shook many large investors, such as AMC and Blackberry.
- This bubble around GameStop forced large investors to raise money to dump their losses, or the shares of other companies.
The surge from small investors sent GameStop’s share price down $ 20 to $ 325 per share over Friday. For hedge funds that had taken the position against Gametop, hoping that the value of the shares would fall (known as shortening the stock), the sudden rise of the stock cost them billions.
One of the biggest losers may be Cohen.
Cohen’s hedge fund, Point 72, had invested nearly a billion dollars in Melvin Capital, another hedge fund led by a former Point 72 employee. Melvin Capital had shorted GameStop’s stock, and so as its value, Melvin Capital sustained such a large loss that it needed a $ 2.75 billion hedge from other investors, including Point 72 to $ 750 million. Were.
Point 72 has lost 15 percent of its value this year, The New York Times reported.
All of this raises questions for Twitter users as to whether Cohen was actually the keeper of their deep pockets, or whether his hedge fund debacle would reduce his willingness to spend on the team.
“Why does one person have anything to do with the other,” he replied to a Met fan, a departure from each individual personality that was the hallmark of his account. For months, Cohen engaged with Mets fans, fielding business offers, answering questions and making jokes.
But on Thursday, Cohen went back and forth on Twitter with ACBic founder Dave Portnoy of sports and culture website Barstool Sports, which has a long history of racist and misbehaving. Portnoy, who has styled himself as a day trader in recent months, accused Cohen of being involved in a stock trading app such as Robinhood, which was banning users from purchasing GameStop stocks. Portoy, without evidence, described such conduct as “criminal”.
Cohen responded in a tweet, “I think that’s what has happened today, to get out of it.”
But fans of Barstool Sports are notorious for going after critics, especially those who snap a photo of Portnoy on social media. In a separate incident this week, the National Women’s Hockey League released a statement Reprimanded Barstool and its chief executive She then released a video, featuring journalists covering the NWHL and league staff for online harassment.
After his brief exchange with Portno, Cohen came under similar fire. In response, he simply closed his account.