Short-sellers experiencing PTSD after RoaringKitty’s return

  • After three years of silence, Keith “Roaring Kitty” Gill posted on X and GameStop’s stock price surged.
  • The price of GameStop has climbed 60 percent over the last five days, as has the price of AMC and BlackBerry stock.
  • Hedge funds who took a short position on GameStop are said to be counting losses of around $1 billion.

This week, hedge funds who had shorted GameStop stocks were left horrified as their losses climbed to nearly $1 billion in a repeat of the Wall Street Bets saga of 2021.

At present GameStop stock is up 60 percent and is currently trading at $49.45. On 8th May, GameStop was trading at just $16.01 but on Monday the price shot up and it appears to be because of Keith ‘Roaring Kitty’ Gill’s return to the online world.

On Monday, after nearly three years of silence, Gill posted to X and it reverberated through the internet.

Gill was the driving force behind the Wall Street Bets saga of 2021. The now famous day trader noted that hedge funds had shorted GameStop in a year where two new consoles were set to drop and he felt that this was foolish. His comment of “I like the stock” was adopted by others and the value of GameStop stock grew rapidly. This left those who shorted the stock (borrowing the stock, selling it and then buying it back at a later date for a lower price when the borrowing term is over) feeling the squeeze.

With Gill’s return being a meme of a gamer sitting up in their chair and taking the game seriously, many seemed to feel that this was a rallying call to plough money into the meme stocks of yore that included both GameStop and AMC.

According to CNBC, buyers have also jumped on Reddit, with prices 9 percent higher on Monday.

While GameStop isn’t trading higher than it did in 2021, for the 24 percent of shareholders with a short position, the climbing price isn’t good news.

With that having been said, the price is climbing and for those who have held on to the stock for all these years, the three years of losses could be made up for.

The Wall Street Bets sub-Reddit is awash with users posting their positions on GameStop, AMC and other stocks including BlackBerry which is trading 20 percent higher than it was five days ago.

There’s no telling how long these rallies will last or how things will end this time around.

For those toying with the idea of investing, it’s worth remembering that this is just gambling in a three-piece suit and you can lose just as much money as you make. We highly recommend watching the movie Dumb Money – which is currently streaming on Netflix – to get a look at how the 2021 saga played out and ended.

Gill has been posting memes all week the latest being a clip from Braveheart only with GameStop superimposed on screen while Mel Gibson screams freedom. We think he still likes the stock.


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