Interestingly from what I’ve read it seems like the hedge fund community overall views the GME event as fair play. ‘Maybe Melvin got burned but they should have known better’, kind of attitude.
The hedge fund community isn't really homogenous that way. Basically all the long/short equity hedge funds with appreciable AUM lost significant money in January, because most of them were short the...well, obvious short candidates, like AMC, GME and BBBY. Other kinds of funds which trade on monentum or which shorted near the top tick made an absolute killing.
Personally I don't think it's unfair when any fund loses money - that's the game. I do think it's unfair Melvin in particular has outsized attention. The only reason Melvin is in the spotlight now is because the WSB zeitgeist just happened upon Melvin's public short and fixated on it without looking at other funds' 13Fs showing the same position. Melvin was far from the only fund short GME. This in turn led the media outlets to hyperfocus on Melvin, which has in turn led the mainstream lay community to hyperfocus on Melvin.
Personally I don't think it's unfair when any fund loses money - that's the game. I do think it's unfair Melvin in particular has outsized attention. The only reason Melvin is in the spotlight now is because the WSB zeitgeist just happened upon Melvin's public short and fixated on it without looking at other funds' 13Fs showing the same position. Melvin was far from the only fund short GME. This in turn led the media outlets to hyperfocus on Melvin, which has in turn led the mainstream lay community to hyperfocus on Melvin.