Updated 13 February 2021 at 18:20 IST
Roaring Kitty, key player during GameStop share frenzy, to appear at congressional hearing
Reddit user Keith Gill, who was one of the key players in the GameStop stock trading row, will appear at a congressional hearing on February 18.
- World News
- 2 min read
Reddit user Keith Gill, who was one of the key players in the GameStop stock trading row, will appear at a congressional hearing on February 18. Gill, who goes by the name Roaring Kitty on Reddit, posted several videos in favour of GameStop before the prices of the retailer's stock skyrocketed last month. Short-sellers, who bet against stocks, lost billions of dollars after GameStop's stock prices suddenly started recording an unnatural jump, propelled by social media enthusiasts such as Gill.
Gill to appear alongside CEOs
Gill has been named on the list of people asked to appear at a congressional hearing next Thursday, which includes industry leaders such as Reddit CEO Steve Huffman, online stock broker Robinhood's CEO Vlad Teney, trading firm Citadel's CEO Kenneth Griffin, and hedge fund Melvin Capital's CEO Gabe Plotkin. Melvin Capital is said to have lost 53% on its investments when the market collapsed last month. GameStop's share, which cost as low as $4 a share last year, surged to $400 per share, causing billions of dollars in losses to hedge funds.
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After the market collapsed, online stock brokerage companies such as Robinhood stopped the sale of GameStop's shares, in order to protect hedge funds like Melvin Capital. This led to a huge outcry from traders on Reddit and outside observers. Congress members called on the House to investigate the matter. Thursday's hearing is titled "Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide".
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In a column titled 'What happened this week?' the Robinhood CEO explained the incident. "It was not because we wanted to stop people from buying these stocks. We did this because the required amount we had to deposit with the clearinghouse was so large," Vlad Teney said in a blogpost last month as Redditors were waging war against hedge funds.
Published By : Vishal Tiwari
Published On: 13 February 2021 at 18:23 IST