The U.S. stock market was lively tonight! Chinese stocks soared 4%, and GameStop, known as the light of U.S. retail investors, had its share price circuit-breakered several times, once soaring by more than 100%.
The person behind the surge in stock prices is Keith Gill, the "Roaring Cat" who led retail investors to resist Wall Street hedge funds. He returned to social media after three years.
What happened that year?
"Retail Investors vs. Wall Street" refers to an event in early 2021 in which some American retail investors united through social media platforms such as Reddit's WallStreetBets forum to buy certain stocks that were heavily shorted by hedge funds, thereby driving up the prices of these stocks significantly.
GameStop is one of the most famous stocks in this movement. In early 2021, GameStop's stock price had been hovering at a lower level, and some hedge funds therefore established a large number of short positions, expecting the stock price to fall further.
Members of the WallStreetBets forum on Reddit began to notice this and began discussing and buying GameStop shares and options, driving up the stock price. Then on January 28 of that year, the stock price rose to $483 per share, reaching its all-time high.
Celebrities such as Tesla CEO Elon Musk also expressed their support for retail investors on social media, further amplifying the impact of the event.
Some short-selling institutions such as Citron Research changed their investment strategies due to huge losses, and the GameStop incident was also adapted into literary works and movies.
What role did Keith Gill play in this? Keith Gill's online name is "Roaring Kitty", which can be understood as "roaring cat". He was previously a marketer for Massachusetts Mutual Life Insurance Company.
Keith Gill has attracted a lot of attention through his account "Roaring Kitty" on Reddit's WallStreetBets forum. He posted a screenshot of his position of buying GameStop call options on the forum and expressed his view that the stock is seriously undervalued.
His behavior and comments attracted the attention of a large number of retail investors, who began to buy GameStop shares collectively, forming a strong short squeeze, causing the stock price to soar, triggering a series of short squeezes, and even causing some Wall Street hedge funds to be harvested.
A typical example is the hedge fund Melvin Capital, which heavily shorted GameStop and lost billions of dollars. The market volatility triggered by Keith Gill not only highlights the influence of social media in modern financial markets, but also reflects the ability of retail investors to have a significant impact on the market under certain circumstances.
After this incident, Keith Gill became a symbol of retail investors' challenge to the traditional financial power structure of Wall Street. His behavior and influence have changed the market's view of retail investors to a certain extent.
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