Meme Army's Million-Dollar Hits Persist Despite Dan Loeb's Surrender

Hedge fund manager Dan Loeb of Third Point LLC has expressed concern over the influence of meme stock traders on short selling, stating that fundamental analysis is taking a back seat to monitoring daily option expiries and Reddit message boards. Short sellers have suffered losses of around $435 million over the past two months due to the surge in stocks like Tupperware, Nikola, and Yellow Corp. Loeb has decided to reduce single name short exposure in favor of market hedges and short baskets, acknowledging the challenges posed by the meme stock phenomenon. The recent resurgence of the meme stock crowd has added to the risks faced by short sellers, with the U.S. Justice Department launching a criminal probe into short selling by hedge funds.