Keith Gill, the internet-famous stock trader known as “Roaring Kitty” and “DeepFuckingValue,” has sent shockwaves through the market once again. After a quiet period following the epic GameStop short squeeze of 2021, Gill revealed a massive $180 million position in GameStop stock (GME) on June 2nd. This included $115.7 million in shares and $65.7 million in call options.
The news ignited a buying frenzy, with GameStop’s stock price surging 19% on Robinhood’s overnight market just 20 minutes after Gill’s post. By the close of trading on June 7th, GME shares had gained a staggering 118% since the announcement. This surge propelled GameStop’s market capitalization to a whopping $20 billion, placing it among the top 400 largest public companies in the United States.
Analysts at The Kobeissi Letter predict Gill is “set to be a billionaire” if the current after-hours trading price of $67.50 per share holds. However, a cloud of controversy looms over Gill’s newfound fortune.
Market Manipulation Allegations and Investigations
Gill’s hefty investment drew sharp criticism from prominent short-seller Citron Research. In a scathing post, Citron accused Gill of market manipulation, suggesting he might be working with others to inflate the stock price. They claim his “reported finances don’t support this trade.”
Also Read: Will Keith Gill’s Return Ignite a New Meme Stock Frenzy? A Look at the GameStop 2.0 Speculation
Adding fuel to the fire, Massachusetts securities regulators reportedly opened an investigation into Gill’s activities on June 4th. Former SEC official Lisa Braganca suggests the probe will determine whether Gill is “moving the market” through illegal means. This could involve examining his communications, including texts, emails, and social media posts on Reddit and the recently rebranded X platform.
The investigation highlights the ongoing concerns about potential manipulation in the age of social media and retail investor activism. Whether Gill’s actions constitute legitimate investment or illegal market manipulation remains to be seen. One thing is certain: the GameStop saga continues to captivate the financial world.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. chainAffairs.com is not responsible for any financial losses.
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