Robinhood Implements Buying Restrictions on GameStop As Roaring Kitty Discloses $175M Bet
Robinhood limited purchases of GameStop shares late Sunday following a surge in the meme stock’s value. It came after speculation arose that Keith Gill, the figure behind the notable short squeeze in 2021, could hold a substantial position in the video game retailer.
The brokerage said Blue Ocean ATS, the platform that facilitates overnight trades for certain stocks, would only accept orders within 20% above or below a reference price of $22.99. So, if traders wanted to buy GME above $27.59 or sell below $18.39 during the night, their order would likely be rejected.
This restriction was meant to allow limited trading during extended hours. But some Robinhood users reported being completely blocked from buying GME overnight.
Robinhood didn’t return Cryptonews’ request for comment by press time.
RobinHood has added a warning for anyone trying to buy GameStop pic.twitter.com/sTJtBoLLJj
— wallstreetbets (@wallstreetbets) June 3, 2024
Robinhood’s warning follows a Reddit post from Gill, who goes by “Roaring Kitty” on YouTube. The post marks Gill’s first since April 21. He’s known as a key figure in the 2021 GameStop short squeeze thanks to his online influence.
A screenshot indicated he purchased 5m GME shares for $115.7m. He also allocated $65.7m towards call options. It also indicated his bet that GME would reach at least $20 per share by June 21.
The screenshot further showed he accrued a profit exceeding $9.3m from his GME holdings. Still, he sustained a loss of almost $2.5m on his call options.
In Robinhood’s overnight markets, GME surged nearly 20% in just 20 minutes to reach $27.58 following Gill’s Reddit post.
GameStop closed at $23.14 on Friday, May 31, marking a 38.8% increase in shares for the year. This increase appears to
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