- Shares of GME and AMC more than doubled over two trading days following the reactivation of analyst The Roaring Kitty’s X account.
- In cryptocurrencies, a wave of hype unfolded around meme tokens on Solana associated with the expert.
On May 13, shares of GME and AMC surged by 74.4% and 78.4% respectively. The market reacted to the reactivation of financial analyst Keith Gill’s (The Roaring Kitty) X account.
At the start, the spike in quotes reached 118.8% and 102% momentarily.
JUST IN: GameStop $GME surges 120% pre-market to $67. pic.twitter.com/VAhoTYGrdS
— Watcher.Guru (@WatcherGuru) May 14, 2024
During the regular session, the NYSE halted trading of the securities several times after reaching threshold growth values.
The expert and WallStreetBets subreddit participant is known for the “war” waged by retail traders against Wall Street in 2020.
The trigger for the rise in the mentioned stocks was The Roaring Kitty’s post on May 12 on X featuring an image of a person holding a joystick and leaning forward in their chair—a meme often used by gamers.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
According to Ortex, losses for short sellers of GME securities reached $1.2 billion and $2.5 billion when counted from the beginning of the month.
GAMESTOP SHORT SELLERS SET TO LOSE $1.2B ON TUESDAY AT $48.75 PREMARKET, ORTEX SAYS
WITH TUESDAY’S STOCK SURGE, GAMESTOP SHORT SELLERS SET TO LOSE $2.5B SO FAR THIS MONTH, ORTEX SAYS
— *Walter Bloomberg (@DeItaone) May 14, 2024
According to S3 Partners, hedge funds specializing in short positions incurred losses on GameStop amounting to $838 million.
Currently, shorts on the company’s shares are equivalent to 24% of all shares in circulation, according to FactSet.
“Short sellers may be in for a rough and bloody ride,” commented S3 Managing Director Ihor Dusaniwsky to CNBC.
On May 14, the hype around GME and AMC securities continued—with their value more than doubling at the opening, the exchange halted trading.
$GME Paused due to volatility
— *Walter Bloomberg (@DeItaone) May 14, 2024
Meme Token Frenzy
Simultaneously with meme stocks, traders triggered purchases of Dogecoin. The cryptocurrency is also associated with Gill.
On May 13, the coin’s price spike peaked at 11.6%. At the time of writing, daily growth rates had reduced to 3.5%—the best result among the top 10 cryptocurrencies by market capitalization.
The greatest activity unfolded in the GME meme coin on Solana. The asset’s price tripled, according to CoinGecko. It is not related to the company.
Over the past day, enthusiasts launched meme tokens through the pump.fun protocol with names associated with The Roaring Kitty. Specifically—GME Stonks, GameOver, and KiethGillWifHat.
Some anonymous developers added an image of a hat or used a popular misspelling of his name and related stocks. They joined the growing list of 512,000 tokens issued using the Solana protocol.
According to Dune’s dashboard, a total of 14,500 different meme coins were launched on pump.fun that day. This is a record figure.
On November 29, 2020, The Roaring Kitty discovered that hedge fund Melvin Capital had short positions on GameStop store network shares. Users then decided to buy up securities to prevent major players from sinking the company.
Subsequently, top managers of firms involved in the scandal testified at hearings in the U.S. House Financial Services Committee.
At the peak of GameStop’s growth, Keith Gill’s shares were valued at $48 million. His X account had been abandoned since 2021.
On May 13, the trader achieved a 32-fold profit on the KITTY meme token following The Roaring Kitty’s reactivation on social media.