GameStop

Roaring Kitty

E-Trade might be giving Keith Gill, the famous “Roaring Kitty,” the boot from its platform. The brokerage, owned by Morgan Stanley, is worried that Gill might be manipulating the GameStop stock (GME) for his gain. 
Recently, Gill’s return to social media, particularly X and Reddit, sparked a significant surge in GameStop shares. According to <a href="https://www.wsj.com/finance/regulation/e-trade-considers-kicking-meme-stock-leader-keith-gill-off-platform-f2003ec4" target="_blank" rel="noreferrer noopener nofollow">The Wall Street Journal</a>, Gill bought a large number of GME options on E-Trade just before these spikes. Some of these options expired the same week, likely earning him a tidy profit. 
Morgan Stanley and E-Trade are debating whether Gill’s social media posts count as stock manipulation. They’re also concerned that kicking him off the platform could backfire, potentially causing other users to leave in solidarity with Gill. As of now, no final decision has been made. 
Gill, a major player in the 2021 GameStop short squeeze, began posting cryptic messages on X in mid-May after a three-year hiatus. This activity sent <a href="https://www.cryptotimes.io/2024/06/03/gamestop-gme-meme-coin-surges-300-in-one-day/" target="_blank" rel="noreferrer noopener">meme stocks and cryptocurrencies</a> soaring. On June 2, he posted on Reddit, revealing that he’s holding $181.4 million worth of GME stock and options betting on GME hitting at least $20 by June 21. 
His posts had a dramatic effect on GME’s stock price. After his June 2 post, GME surged 19% in Sunday night trading, and by Monday, June 3, it closed up 21% at $28, even climbing another 8.5% in after-hours trading to reach $30.36, as per <a href="https://www.google.com/finance/quote/GME:NYSE" target="_blank" rel="noreferrer noopener nofollow">Google Finance data</a>. Since Gill’s return to X, GME is up nearly 68% for the year, including a 60% jump since his comeback. 
Gill continued his activity on June 3, posting on Reddit again to showcase his $33.6 million gain on 5 million GME shares and a $51.8 million profit on his options. 
Gill holds several securities-industry licenses and was previously a registered broker. The Massachusetts Securities Division is looking into his activities, and sources say the SEC is also reviewing GameStop options trades around Gill’s posts. While the SEC has discussed internally whether these trades could be seen as manipulation, it’s unclear if they’re specifically investigating Gill. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/05/30/robinhood-moves-close-to-settle-gamestop-meme-stocks-suit/" target="_blank" rel="noreferrer noopener">Robinhood Moves Close to Settle GameStop Meme Stocks Suit</a> 
</blockquote>

E-Trade Eyes Removing Roaring Kitty Amid GME Frenzy: WSJ

The Crypto Times

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