Robinhood limited purchases of GameStop shares late Sunday following a surge in the meme stock’s value. It came after speculation arose that Keith Gill, the figure behind the notable short squeeze in 2021, could hold a substantial position in the video game retailer. The brokerage implemented restrictions on purchases of GameStop shares on the Blue Ocean ATS platform, limiting trades within 20% above or below a reference price of $22.99. This move was intended to allow limited trading during extended hours, but some Robinhood users reported being completely blocked from buying GME overnight, with the platform not responding to requests for comment.
In a Reddit post, Gill, also known as “Roaring Kitty” on YouTube, announced his first major purchase of GameStop shares since April 21. He disclosed that he purchased 5 million GME shares for $115.7 million and allocated $65.7 million towards call options. Additionally, Gill bet that GME would reach at least $20 per share by June 21, with his overall profit from his GME holdings exceeding $9.3 million. Following Gill’s post, GameStop’s stock price surged nearly 20% in just 20 minutes on Robinhood’s overnight markets, reaching $27.58. Gill’s involvement in GameStop trading has once again sparked speculation and interest in the stock among investors.
GameStop closed at $23.14 on Friday, marking a 38.8% increase in shares for the year. This increase appears to have been influenced by Gill’s comeback and his recent high-profile purchases of GameStop shares and call options. Gill’s return to social media has triggered a surge in GameStop’s value, with shares doubling in May alone. Simultaneously, Ethereum-based meme coins like GME have seen renewed optimism in the market, with investors anticipating the next bullish phase guided by Roaring Kitty’s reemergence. Gill has been sharing mysterious posts and memes on social media since his return, generating significant attention and engagement from followers.
Robinhood’s decision to restrict trading of GameStop shares after Gill’s investment fueled overnight price jumps has caused controversy among users and raised concerns about market manipulation. The platform’s limitations on buying GME shares through the Blue Ocean ATS platform have faced criticism from traders who feel they have been unfairly blocked from participating in the market. The influence of social media figures like Gill on stock prices has become a hot topic in the financial industry, with regulators scrutinizing the impact of online communities and influencers on market volatility. Despite the restrictions imposed by Robinhood, the continued interest in GameStop and the meme stock phenomenon shows no signs of slowing down, with investors closely monitoring developments in the market.
