Reddit Trader Who Led the GameStop (GME) Rally Lost $13 Million in a Day

Keith Gill
Keith Gill

Keith Gill, the Reddit trader who led the GameStop (NASDAQ: GME) rally just lost $13 million on Tuesday, as GME shares plummeted. The Redditor who goes by the name “Roaring Kitty” or “DeepF***ingValue” — led the WallStreetBets Reddit group campaign — pushing GME stock to $483.

However, Gill revealed on YouTube and in a post on WallStreetBets that his GME holdings value plunged to $7.6 million. The mastermind behind the GME rally had $21 million in previous days and over $50 million last week when GME was trading at $483. Nevertheless, GameStop lost 80% of its value when the short-squeeze effect faded, resulting in $30 billion losses to traders.

In 2019, Gill bought shares of GameStop when the stock was traded for $4 a share, while options to buy cost were $50,000. That being said, other traders who only bought GME this month when it was leading the rally probably couldn’t make much profit.

Hedge funds might have a hand in GME rally

Furthermore, shares of other stocks that were soaring last week saw a significant decrease. Movie theater chain AMC Entertainment plunged 40% on Tuesday. On the other hand, Blackberry —the Canada-based multinational company’s shares was $28 last week. However, after the short-squeeze effect faded, the stock downturned to $12 on Wednesday.