Plotkin Shuts Melvin Hedge Fund Reeling From Redditor Attack (1)

More than a year after Gabe Plotkin’s Melvin Capital Management was grievously injured in a short squeeze by amateur traders who organized on Reddit, the $7.8 billion hedge fund is giving up and shutting down.

Plotkin’s abrupt decision, announced in a letter to clients Wednesday, ends his attempt at a long-shot comeback funded by some of Wall Street’s biggest players. The effort showed initial promise last year but unraveled in recent weeks as he racked up new losses and frustrated backers with a short-lived plan to reimpose fees.

WATCH: Gabe Plotkin will wind down Melvin after suffering billions of dollars of losses. Sonali Basak reports.

Source: Bloomberg

“The past 17 months has been an incredibly trying time ...