Melvin Capital adapting strategy after GameStop mania as hedge funds rethink short-selling methods

Melvin Capital's Plotkin at GameStop hearing: Reddit traders exploited opportunity around short interest

Melvin Capital is rethinking its short-selling approach after it was caught up in the Reddit-fueled GameStop trading frenzy, according to the hedge fund's manager.

In a congressional hearing Thursday, Melvin's Gabe Plotkin said the power of social media was on full display as retail traders to piled into shares of GameStop, and it's something all hedge funds will have to contend with going forward.

More In Pro Insight

CNBC ProThe most widely followed Wall Street investor survey shows big leap in economic fears
watch now
CNBC ProEquities still have further upside despite cost pressures, strategist says
watch now
CNBC ProP&G's Jon Moeller reacts to Q3 earnings, supply chain issues, inflation and more