Wall Street Journal: Roaring Kitty may be removed from stock trading platform ETrade

YouTuber Keith Gill, who helped drive GameStop's stock surge, could be removed from retail stock trading platform ETrade. ETrade, owned by investment giant Morgan Stanley, has "growing concerns that his recent purchases of GameStop (GME) shares may represent stock manipulation," according to people familiar with the matter. Kitty's long-inactive Reddit account posted a screenshot of an investment account on Sunday that holds more than $200 million worth of GameStop shares and call options. Morgan Stanley employees have been monitoring Kitty's ETrade account since Roaring Kitty reappeared on the X platform in mid-May. ETrade employees "discovered that he purchased call options before his tweets were posted" and that "Kitty's trades may have generated profits due to stock price movements triggered by his tweets." With a new surge of activity in GME, ETrade appears to be considering stopping Kitty's trading. According to the Reddit post, if his latest bet (GME stock will be priced over $20 on June 21) proves true, he will make a fortune. Those who follow him will also benefit. Morgan Stanley has hired financial crime units and external consultants on the matter, but the company knows that taking action will mean "attracting the attention of his meme army", and Morgan Stanley employees are also worried that closing Kitty's account may cause the company to lose ETrade customers. According to data from investment tracker @unusual_whales on X, the Roaring Kitty account has grown 48% today alone, or about $85 million. (The Wall Street Journal) Earlier, Roaring Kitty (Reddit ID DeepFuckingValue) posted again on the Superstonk sub-forum of the Reddit platform after three years. The picture shows that it has $65.7 million worth of Gamestop stock call options with an exercise price of $20 and an expiration date of June 21.