Robinhood has imposed restrictions on GameStop (GME) share purchases following a dramatic surge in the meme stock’s value late Sunday. This surge was triggered by speculation that Keith Gill, the notable figure behind the 2021 GameStop short squeeze, might hold a substantial position in the video game retailer.
The company announced that Blue Ocean ATS, the platform facilitating overnight trades for certain stocks, would only accept orders within 20% above or below a reference price of $22.99. Consequently, any orders to buy GME above $27.59 or sell below $18.39 during the night would likely be rejected.
This restriction aimed to allow limited trading during extended hours. However, some Robinhood users reported being completely blocked from buying GameStop stocks overnight.
GameStop Whale Keith Gill
This development followed a Reddit post from Gill, known as “Roaring Kitty” on YouTube. The post, which was Gill’s first since April 21, reignited interest due to his significant influence in the 2021 GameStop short squeeze.
A screenshot shared by Gill indicated he had purchased 5 million GME shares for $115.7 million and allocated $65.7 million towards call options. It also showed his bet that GME would reach at least $20 per share by June 21.
Profits Exceeding $9.3M on GameStop Shares
The screenshot further revealed that Gill had accrued a profit exceeding $9.3 million from his GME holdings, despite sustaining a loss of almost $2.5 million on his call options. Following his Reddit post, GME surged nearly 20% in Robinhood’s overnight markets within just 20 minutes, reaching $27.58.
GameStop’s shares closed at $23.14 on Friday, May 31, marking a 38.8% increase for the year. This rise appears to have been influenced by Gill’s return to the spotlight.
Roaring Kitty’s Return Sparks Speculation
Gill’s return to social media has fueled significant speculation and market movements. On the same day as his Reddit post, he shared a green UNO reverse card on X, adding to the series of mysterious posts and memes he has been sharing since his return in May. This latest post attracted nearly 50,000 likes by early Monday.
Three weeks ago, Gill’s reemergence on social media ignited a remarkable surge in GameStop’s value, with shares doubling in May alone.
His influence extended beyond traditional stocks, as Ethereum-based meme coins, including one named GME, showed renewed optimism. These meme coins have become significant players in the market since Gill’s return, guiding the next bullish phase.