Robinhood recently restricted the trading of GameStop shares following a surge in the stock’s value speculated to be related to Keith Gill, also known as “Roaring Kitty.” Gill, who was behind the notable short squeeze in 2021, posted on Reddit indicating that he had purchased 5 million GME shares for $115.7 million and allocated $65.7 million towards call options. The restriction from Robinhood limited trading within 20% above or below a reference price of $22.99 during overnight hours, affecting some users who reported being completely blocked from buying GME overnight.
Gill’s post on Reddit, his first since April 21, triggered a surge in GameStop shares in Robinhood’s overnight markets, increasing nearly 20% in just 20 minutes to reach $27.58. Robinhood added a warning for anyone trying to buy GameStop shares, as the surge seemed to be fueled by Gill’s investment and online influence. This surge follows Gill’s return to social media three weeks ago, which also sparked a remarkable increase in GameStop shares, doubling in value in May alone.
In addition to his investment in GME shares and call options, Gill has been posting mysterious memes and messages on social media, adding to market speculation. One of his recent posts included a green UNO reverse card, which garnered nearly 50,000 likes. The resurgence of Gill’s influence has also impacted Ethereum-based meme coins, including one named GME, which have shown renewed optimism in the market. Gill’s return has been seen as a guide for the next bullish phase in the meme coin market.
Despite accruing a profit of over $9.3 million from his GME holdings, Gill also sustained a loss of almost $2.5 million on his call options. The overnight surge in GameStop shares to $27.58 following Gill’s post indicated the market’s reaction to his investment. GameStop closed at $23.14 on Friday, May 31, showing a 38.8% increase in shares for the year. Gill’s bet that GME would reach at least $20 per share by June 21 appears to have influenced market speculation and trading activity, leading to Robinhood’s decision to restrict trading during overnight hours.
Overall, Keith Gill’s return to social media and investment in GameStop shares has fueled speculation and market activity, particularly in meme stocks and Ethereum-based meme coins. Robinhood’s restriction on trading GME shares during overnight hours comes amidst the increased interest and activity driven by Gill’s investment and online influence. The market’s reaction to Gill’s posts and investments has led to significant fluctuations in GameStop’s stock price and renewed optimism in meme coin markets, positioning Gill as a key figure in guiding the next bullish phase.
