GME Bear Faction

• There exists an ongoing conflict surrounding GME where opposing factions compete over the outcome of the GME market price
• In very loose terms, these opposing factions can be defined as "Bears" and "Bulls"
• GME Bears are market participants that have a position that gains when the share price of GME goes down, for example by shorting the stock
• Opposed to GME Bears are GME Bulls, who are market participants that have a position that gains when the share price of GME goes up
• GME Bears in general are proponents of a bear thesis

Melvin Capital was one of the most prominent bearish investors on GME, taking a large short position that contributed to its exposure during the 2021 GME sneeze.

The fund's losses during this period were severe, requiring outside capital to temporarily stabilize operations, and its reputation was irreparably damaged by the episode. Despite attempts to restructure and continue managing money, Melvin Capital ultimately announced its closure in 2022, with its GME-related losses widely regarded as a central factor in the fund's downfall, becoming the most prominent "casualty" of the ongoing GME conflict.

Melvin Capital's involvement during the sneeze era of the GME saga was dramatized in the movie Dumb Money.

It is difficult to know with certainty which market participants are currently part of the faction of GME bears, because short positions and bearish bets are often only partially visible. Some data and filings do suggest at least some investors remain bearish or hold short interest.

The continued persistence of anti-GME FUD and negative GME narratives suggest something deeper than fair skepticism — it implies the presence of a faction of market participants that stand to gain when the stock falls. After all, if no such faction existed, then from where does the persistent cynical, condescending, and dishonest anti-GME messaging come from?

By promoting the pretense that no such bearish faction exists, these actors can operate with less scrutiny and opposition. Concealing their presence allows them to amplify negative narratives and FUD without drawing attention, ensuring that their profit motives remain hidden while the market reacts to fear rather than facts. In effect, obscuring their role increases the efficiency of their strategy, letting them benefit from declines while avoiding public accountability.