Keith Gill Accused of Market Manipulation by Citron Research Amidst GameStop Stock Surge
Summary:
Citron Research has accused investor Keith Gill of market manipulation rather than legitimate investing in GameStop (GME) stocks. They believe his significant trade in GME could be backed by a larger entity. After Gill shared that he has over $300 million in GME stock, Citron postulated that Gill could become the first GameStop billionaire by the end of the week if GME prices continue to rise. These allegations have prompted backlash from retail investors. Despite losing 100% on its short GME positions in January 2021, Citron Research remains a top GME short-seller.
Citron Research has accused Keith Gill, also known as "Roaring Kitty," of manipulating GameStop's (GME) market rather than legitimately investing. One of the most well-known proponents of shorting GameStop, Citron Research, has cast aspersions on Gill for supposedly manipulating the market. Their June 3rd post read:
"Gill’s posts are suggestive of manipulation rather than a strong investment argument. This is particularly the case given that the stock is now 2,000% higher than when he initially promoted it nearly four years ago."
These accusation were made after Gill had announced a whopping $300 million increase in his GME stock, a windfall that could potentially make him GameStop's first billionaire by week's end, assuming GME shares continue to climb. Gill's shared screenshot showed that he bought 5 million GME shares worth $115.7 million, and poured $65.7 million into call options, wagering that GME would hit $20 per share by June 21.
In their same post, Citron Research questioned whether Gill's GME investments were backed by a larger entity, claiming:
"We think Gill has financial support elsewhere. His documented finances couldn't have allowed such a substantial trade. We believe investors will see beyond this overambitious gamble."
Citron argument has garnered disgruntlement from retail investors who disagreed with the accusations of market manipulation. A pseudonymous GME investor named "Fitzzzy" responded to Citron's claims, stating,
"Despite shorting GME, you seem not to have grasped your investment strategy well. DFV [Keith Gill] successfully placed ITM calls in late April and early May, each worth nearly $10 million around May 13 and 14."
Another investor under the alias “Comedyorwat” took a jab at Citron's short positions, while financial researcher “Wolf of My Street” brought up the 2021 FBI raid on Citron Research founder Andrew Left’s residence on claims of wrongful conduct by the short-seller.
Meanwhile, Citron Research continues to remain a leading GME short-seller, being the recent large firm to declare its short position on GME, according to the Kobeissi Letter of June 3rd post. Citron Research was driven to close its short GME positions with a 100% loss in January 2021 due to the retail buying spree catalyzed by Gill. GME’s stock has risen 21% daily and soared over 71% within the past month, trading at $28 in the pre-market as of June 4.
Published At
6/4/2024 1:06:47 PM
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