According to PANews, YouTube influencer 'Roaring Kitty', also known as Keith Gill, who previously helped drive up the stock price of GameStop, may face expulsion from the retail stock trading platform ETrade. Insiders suggest that investment giant Morgan Stanley, which owns ETrade, is increasingly concerned about potential stock manipulation related to Gill's recent purchases of GameStop (GME) shares. This comes as Gill's long-inactive Reddit account posted a screenshot of an investment account holding over $200 million in GameStop stocks and call options.
The Wall Street Journal reported that since Gill reappeared on Twitter in mid-May, Morgan Stanley's employees have been monitoring his ETrade account. ETrade staff found that he had purchased call options before posting tweets, and that Gill's trades may have profited from stock price fluctuations triggered by his tweets. As GME experiences a new wave of activity, ETrade appears to be considering halting Gill's trading. According to a Reddit post, if his latest bet - that GME shares will exceed $20 in value by June 21 - proves true, he stands to make a significant profit. Those who follow him would also benefit. Morgan Stanley has hired its financial crime department and external consultants to handle the matter, but the company is aware that taking action would draw the attention of Gill's 'meme army'. Morgan Stanley's employees also fear that closing Gill's account could result in the loss of ETrade customers.
Data from investment tracker @unusual_whales on Twitter shows that just today, Gill's account grew by 48%, equivalent to about $85 million.