SEC Votes Through New Short Selling Rules For Hedge Funds

The Securities and Exchange Commission has finally adopted rules relating to short sellers initially proposed after the 2021 GameStop (NYSE:GME) trading saga. The trading frenzy was driven by activity on social media to punish hedge funds with significant short positions in certain stocks. The most visible casualty of the saga was hedge fund Melvin Capital, which lost billions of dollars from its short positions against GameStop and other companies. Q3 2023 hedge fund letters, conferences and more These losses ultimately forced it to shut down in 2021, a year later. But Melvin wasn’t the only fund that ended up having…