How We Got Here

"Roaring Kitty", as the meme stock investor Keith Gill calls himself, returned to X after an absence of three years last month, and posted a few memes, with no specific stock commentary. On the basis of that alone,GameStop Corp.(NYSE:GME) shares spiked from $17.46 on May 10th, to $55.69 on May 14th, before giving back those gains. That was his first GME pump this year.

The weekend before last, Gill returned to Reddit, posting a screen shot, purportedly of his account, showing a $116 million position in GameStop, and 120,000 call options on it. As a result the stock spiked...