GameStop hearing; what happens next to Robinhood CEO and 'Roaring Kitty'?
Robinhood should compensate traders for any losses incurred from trading restrictions, and Keith Gill, also known on Twitter and YouTube as 'Roaring Kitty', would likely face penalties for initiating the squeeze on GameStop shares, of which he had held a long position, Horwitz said Todd Horwitz, chief market strategist of BubbaTrading.com.
“I would go after [Robinhood] like crazy. What they did is they violated the rules or the laws. They cost me money because of them, not because of my bad trading, I’d go right after them,” Horwitz said.
Vlad Tenev, Robinhood CEO, has apologized to Robinhood users during Thursday’s Congressional hearing.
Horwitz added that Keith Gill would likely be penalized by authorities for his involvement, potentially even facing jail time.
Gill had a long position in GameStop shares of around $50,000 before the short squeeze happened, and this position grew to around $50 million at the height of the squeeze.
Gill defended himself by saying that he did not make any investment recommendations, and that his YouTube videos about GameStop were purely “educational” and for analytical purposes only.
“I would guess that [Gill] has some big problems as well. When you’re a registered person…you’ve got a lot of regulations that you’ve to to apply for and posting an educational video that somehow led to a short squeeze, there has to be more inside the video,” Horwitz said. “If they prove that he initiated this at all, he’s going to jail. This is a real scam and if you could create this short squeeze, I mean, he’s got no business posting those types of videos that involve a stock directly anyway.”