As GameStop Corp. experiences another surge in popularity among meme-stock enthusiasts, the attention has turned to one individual: Keith Gill, better known as "Roaring Kitty" or "Deep F--ing Value." Gill's rise to fame came during the original 2021 GameStop rally, where his investment strategy and influence on social media sparked a short squeeze that shook Wall Street. However, as Gill's trading activity comes under closer examination, questions arise about market manipulation and the changing dynamics of meme stocks.

Gill's prominence grew as he showcased his massive stake in GameStop and its call options, with a portfolio peaking at over $550 million on June 6. Although he has since increased his stock holdings, the value of his portfolio has declined along with the company's shares. This has raised concerns among both Wall Street and retail traders, as they grapple with the existential question of what constitutes market manipulation in the context of meme stocks.

The initial GameStop rally challenged the notion of short-selling, as Redditors united to support struggling companies and punish hedge funds. However, as the current phenomenon unfolds, it becomes unclear who the "Goliath" and the "David" are. The tables seem to have turned, and some trading firms and former fans are now viewing Gill with suspicion. Redditors are increasingly questioning whether his actions constitute a basic pump and dump scheme.

Recent snapshots of Gill's brokerage account indicate that he unwound a previous position of 120,000 call options, while increasing his GameStop holdings to approximately 9 million shares, valued at over $262 million. Notably, Gill's actions have once again sent the stock price soaring, prompting GameStop to seize the opportunity and sell over $2 billion worth of stock.

However, despite the apparent excitement surrounding GameStop, investors who bought shares in the past month and held onto them have experienced mixed results. Hedge funds and sophisticated investors, having adapted from the events of three years ago, may come out ahead at the expense of Gill's retail-trading supporters.

The episode involving Gill has also brought into focus the question of market manipulation. Reports suggest that Morgan Stanley-owned brokerage E*Trade is considering barring Gill from its platform due to concerns over potential manipulation. It is important to note, however, that Gill's snapshots of his brokerage account show no obvious evidence of pushing prices higher for personal gain, as is typically associated with market manipulation.

Craig Marcus, a partner at law firm Ropes & Gray, emphasizes that while one may disagree with Gill's valuation of the stock, executing on his investment thesis and not engaging in manipulative practices make it difficult to prove malintent.

It is worth noting that Gill faced accusations of market manipulation even three years ago when he first gained public attention. In 2021, he was named in a lawsuit alleging that his influence on certain stocks was manipulating the market. This recent scrutiny may have prompted Gill to acknowledge the possibility of drawing further scrutiny from fans, regulators, and trading professionals during his highly anticipated return to YouTube on June 6.

As GameStop's fate remains uncertain and the debate over market manipulation intensifies, the role of individual influencers like Roaring Kitty in the meme-stock phenomenon will likely continue to generate interest and scrutiny in the months to come.