Jan.25: News breaks out that Citadel and Point72 are investing $2.75bn In Melvin. Melvin started the year with $12.5bn, and lost ~30% through Friday. Friday $GME closed at $65.

Following the math here (https://www.reddit.com/r/wallstreetbets/comments/l5jwnj/melvin_is_down_another_25_on_gme/), Melvin loses ~$1bn for each $12 increase in $GME price, which pans out to Melvin being under the water when GME hits ~$200. Tuesday the price went from ~$88 at open to ~$148 at close. It opened the day after at ~$355, closing at ~$348.

I assume Melvin has a brokerage that margin calls them when they fuck up. They then should have been margin called at some point between Tuesday and Wednesday. Thursday, the price reached almost $500. Following the calculations above, that pans out to something like $38bn owed by Melvin, assuming a fixed price of $500. With the ultra low liquidity and all the retards holding, you know covering would have cost way more than that.

Question: who the fuck was going to pay for it? Because Melvin sure wasn't.

On Thursday, RH and other brokers suddenly halted buying of GME. Webull's CEO said in an interview that they were forced to by their clearing house, as they risked otherwise not having the money to give people when they sold in the future. He mentioned (as "an example"), that if Melvin is not able to cover their debt, then it was their broker's job to cover it for them, and if the broker couldn't the clearing house had to pay. Now if all these institutions don't have enough money to pay for the debt, you get a total market meltdown.

So, with all this in mind, if the price doesn't budge, who the fuck is going to shill out the money to buy back all the shorted GME? Like seriously, how do they get out of this situation? Who is going to suck up the losses at this stage?