On Thursday, long-time GameStop supporter Keith Gill, aka Roaring Kitty, delivered his testimony on the stock’s infamous short squeeze.
The lawsuit against him claims he used his amateur online persona to illegally influence the direction of the stock market… with his legion of less than 1,000 followers and subscribers on social media.
When the big dogs of Wall Street — think Citadel, Ken Griffin and Marvin Capital — decide they want to bark up a stock, what happens? They get rewarded and thrown a bone without having to worry about any pending lawsuits against them afterward.
In January, Chamath Palihapitiya, the billionaire CEO of Social Capital, went on CNBC and announced he bought $125,000 of call options on GameStop after asking his 1.3 million followers which stock he should buy…
When the stock market opened the next day, GME’s price had doubled. But no one’s pointing fingers at him for manipulating the direction of the stock market.
How is that fair?
In this edition of “I call BS,” I’m calling BS on everyone after watching the Roaring Kitty GameStop testimony.
Everyone’s suing Roaring Kitty and I just can’t get behind it.
In a virtual hearing in Washington, Gill said the trading videos he posted on Youtube would only get 13-14 views.
In his videos, Gill would give his fundamental analysis of GameStop Corp. (NYSE: GME) as a company, its value and how much he had invested in it… a practice he’d been doing for almost a year.
When the GameStop frenzy began to gain traction, Gill gained popularity as more people began to watch and listen to his GameStop content.
So now the securities class-action firm Hagens Berman is suing Roaring Kitty on behalf of Christian Iovin. This class-action lawsuit sprung up after Iovin sold about $200,000 worth of calls betting against GameStop’s price rising.
Iovin says that Roaring Kitty’s quintessential influence caused GME shares to rise, resulting in Iovin’s devastating — and avoidable — loss…
Now I don’t know about you, but the last time I lost money on a stock, I couldn’t just sue someone for pushing it in the direction I didn’t want it to go.
This whole situation is crazy.
These types of lawsuits popping up over the GameStop short squeeze is something I never thought I’d see from Wall Street.
What we’re actually seeing is a guy who played with fire, got burned and now wants to sue the matches for his decision.
This is not a good look for the stock market or retail investors at all.
Check out the video below to see how else Wall Street is reacting to Roaring Kitty’s GameStop testimonial. As always, leave your thoughts in the comment section below and don’t forget to subscribe to my YouTube channel to stay up to date with all things options trading.
P.S. After learning about Roaring Kitty’s GameStop testimony , read this below.
Legendary trader Jeff Zananiri just told us about a breakthrough trading strategy so powerful, he’s already used it to signal 20%, 30% and even 50% winners overnight…
How does he do it? By simply buying certain stocks right at the market’s close and then selling them again the next morning.
We almost didn’t believe Jeff when he told us about his overnight strategy, but then we started digging into the 3 p.m. EST market phenomena that Jeff calls a Burn Notice.
Spot a Burn Notice at the end of the trading day and you could end up grabbing double-digit returns the very next morning.