Keith Gill, better known in the crypto community as “Roaring Kitty,” is facing accusations of market manipulation amid his $300 million GameStop (GME) position. Criticism has erupted from and research firm Citron Research, a prominent short-seller of GameStop shares. Citron suggests that Gill’s substantial near-term option position and influential online presence may facilitate unfair market manipulations.
These allegations arose shortly after Gill revealed that his GME stake had grown to over $300 million. If the stock continues to rise, Gill could potentially become the first GameStop billionaire by the end of the week. The evidence brought forth by Gill indicates that he purchased five million GME shares for $115.7 million and invested an additional $65.7 million into call options, anticipating the GME stock to hit at least $20 per share by June 21.
A file shared by Citron Research speculates that Gill’s GME position may be funded by a larger entity. They argue that the size of this trade is too large for Gill to have completed solo, considering his known financial status.
Despite being burned by GameStop stock earlier this year, Citron Research still remains one of the leading short-sellers of GME shares. In January 2021, they were compelled to exit their short GME positions at a complete loss because of a sudden retail buying boom triggered by Gill.
In response to Citron Research’s allegations, backlash has ensued among retail investors. Many criticize the firm’s hasty allegations, suggesting a lack of due diligence and attention to its investment portfolio. In a turn of the table, commentators have raised similar questions about Citron’s notorious short positions, referencing past investigations into the firm’s alleged trading misconduct.