June 5, 2024
People in Crypto

Citron Accuses Roaring Kitty of GME Market Manipulation

Citron Research Criticizes Keith Gill

Keith Gill, known as “Roaring Kitty,” has come under fire from Citron Research, a major GameStop (GME) short seller. Citron has accused Gill of market manipulation in relation to his significant GME position. In a June 3 X post, Citron stated:

“Now, with $GME, he posts with a large account and a significant near-term option position, appearing more like manipulation without a solid thesis. Considering the stock is now 2,000% higher than it was in his initial video almost four years ago,

Citron’s criticism follows Gill’s revelation that he has profited over $300 million from his GME position, potentially positioning him as the first GameStop billionaire if stock prices continue to rise.

Details of Gill’s GME position

Keith Gill’s shared a screenshot detailing his substantial GME position. He reportedly bought five million GME shares for $115.7 million and invested $65.7 million in call options, anticipating GME to reach at least $20 per share by June 21. Citron Research alleges that Gill’s GME position might be supported by a larger financial backer. The firm suggested:

“We believe someone is backing Gill; there’s no way he made this size trade alone. His reported finances don’t support this trade. Investors will see through this roaring Icarus.”

Citron Research’s Ongoing GME Shorting

Citron Research has a history of GME short positions. According to a June 3 post by the Kobeissi Letter, Citron announced another short GME position on May 16, despite a significant loss in 2021:

“Citron Research was the latest short seller to announce a short position. On May 16th, Citron announced that they were short $GME again. In 2021, Citron lost over $100 million shorting $GME.”

In January 2021, Citron closed out its GME short positions at a 100% loss due to a retail buying frenzy initiated by Gill. Currently, GME stock price has surged 21% on the daily chart and over 71% in the past month, trading at $28 in pre-market on June 4.

Backlash from GameStop Retail Investors

Citron’s allegations against Roaring Kitty have provoked a strong response from GameStop retail investors. Many took to social media to voice their objections. Pseudonymous investor Fitzzzy commented:

“For someone who is short on GME, you don’t pay much attention to your investment. DFV [Keith Gill] was buying ITM calls in late April and early May for $100k at a time. Those same trades were worth over $10 million each on May 13th and 14th.”

Another user, Comedyorwat, questioned Citron’s credibility:

“You know what’s funny? We had the very same questions about your short positions, in which they were reported at over 240% before the sneeze.

Ongoing Debates

The debate over Keith Gill’s GME position continues to intensify as Citron Research and retail investors clash. While Citron accuses Roaring Kitty of market manipulation, Gill’s supporters defend his actions and question the integrity of the short sellers. The GME saga underscores the ongoing tension between institutional investors and the retail investor community, with significant financial stakes on both sides.

Image by jannoon028 on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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