Hedge funds Citadel, Point72 putting $2.75B in Melvin Capital, hit by GameStop short

• Ken Griffin's Citadel and Steve Cohen's Point72 Asset Management are investing $2.75B into Melvin Capital to help stabilize the fund that has ben hammered by bad short bets this year, The Wall Street Journal reports.
• Melvin Capital's short positions, including against GameStop (GME, +14.4%), have contributed to losses of 30% through Friday, the Journal says.
• GameStop has soared as retail investors, and particularly Reddit users, have piled into the stock to take on the shorts, including Citron. The stock, which has short interest of 150%, was up as much 144% today, but also saw periods in the red.
• Citadel is investing $2B and Point72, which already has $1B in Melvin, is investing $750M, both for non-controlling revenue shares.
• GameStop has also had on outsize influence on ETFs that, before the rally, had relatively small allocations in the stock.