- Citron Research accuses Keith Gill (Roaring Kitty) of manipulating GameStop stock with his $300 million position
- Citron Research alleges that Gill’s position is backed by a larger entity, as his reported finances don’t support such a large trade
- Retail investors have backlashed against Citron Research’s allegations, with some referencing the firm’s previous losses from shorting GameStop
Keith Gill, known online as Roaring Kitty, has amassed an enormous stake in GameStop (GME) worth over $300 million. This has sparked accusations of market manipulation from prominent short sellers.
Citron Research Allegations
Citron Research, one of the main GameStop short sellers, criticized Gill for alleged market manipulation in a recent Reddit post. They stated that Gill’s large position and options trading seems “more like manipulation without a solid thesis.” This comes after Gill shared that he is up over $300 million on his GME position.
Citron also speculated that Gill’s massive trade may be financially backed by a larger entity, stating “We believe someone is backing Gill – there’s no way he made this size trade alone.” They added, “Investors will see through this roaring Icarus.”
Citron Remains Top GME Short Seller
According to the Kobeissi Letter, Citron Research was the latest major firm to announce a short position in GME. In May 2021, Citron stated they are short GME again after losing over $100 million shorting the stock earlier in the year.
Retail Investors Defend Roaring Kitty
Citron’s post accusing Gill of manipulation prompted backlash from retail investors. One Redditor pointed out Gill was buying large blocks of call options, now worth over $10 million each, in late April and early May.
Another Reddit commenter highlighted the hypocrisy of Citron questioning Gill while defending their own large short position. The FBI raid of Citron founder Andrew Left’s home in 2021 related to alleged wrongdoing was also mentioned.
GameStop Share Price Continues to Climb
Despite the accusations against Gill, GameStop shares continue to rise. The stock price is up 21% on the day and over 70% in the past month, trading around $28 in pre-market on June 4.
Conclusion
The GameStop saga rages on as accusations fly between short sellers like Citron and individual investors like Roaring Kitty. With Keith Gill potentially becoming a billionaire off his massive long position, the battle between Wall Street and internet traders continues to heat up.
