Keith Gill, also known as "Roaring Kitty" or "DeepF***ingValue," made a surprising return to social media, sparking questions about his influence on GameStop’s stock price. After fading from the public eye following his testimony before Congress in 2021, Gill resurfaced with a tweet that caused GameStop’s stock to jump significantly. His cryptic posts on social media have left followers speculating about his intentions and whether he is indirectly manipulating the market.
The legality of Gill’s actions has been questioned by securities lawyers, with differing opinions on whether he has violated securities laws. Some argue that his posts do not meet the criteria for market manipulation, while others see potential liability due to the impact of his social media activity on the stock price. Gill’s recent posts have led to GameStop’s stock price more than tripling, raising concerns about potential SEC scrutiny. E*Trade, where Gill holds an account, has reportedly considered reviewing his account over concerns of possible stock manipulation.
The SEC may monitor Gill’s activities closely, especially considering the significant impact his social media posts have had on GameStop’s stock price. While some experts believe that any claim of manipulation would be difficult to prove, others suggest that the SEC could intervene and make his life difficult. Gill’s broker reportedly had concerns about his trading activities, prompting further scrutiny into the source of his funds and the accuracy of the Reddit screenshot displaying his positions.
One possible explanation for Gill’s large purchase of GameStop stock and options is that he made a substantial profit on a short-dated options trade in May and reinvested the funds into GameStop. The timeline of his social media activity aligns with the start of trading for these contracts, suggesting that he may have been strategically timing his trades. Another speculation is that Gill may have invested his initial winnings into Nvidia, a stock that has seen significant growth, allowing him to increase his purchasing power.
Despite the lingering questions surrounding Gill’s financial activities, he has remained silent on the matter and has not disclosed the source of his funds. His recent return to social media has not only reignited speculation about his influence on GameStop’s stock price but has also raised concerns about potential market manipulation. As regulators and experts continue to assess Gill’s actions, the future implications of his social media activity on the stock market remain uncertain.
