i honestly thought it was a joke until i saw it myself.pic.twitter.com/zMtKlru0Ar
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here's my take on this btw: point72 has a lot of overlap in short and long book with melvin and citadel has one of more funds with same overlap. letting melvin get run-on would spill over to point72 and maybe citadel and so its cheaper to prop them up than risk them unwinding
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I think it’s simpler - this trade adds capital to shorts they are confident in, with limited downside (can’t lose more than 100%) plus they get a sweetener of a share of mgmt fees and maybe eventual performance fees.
