The meme trade influencer known as "Roaring Kitty" faces the possibility of a ban from the stock trading platform E-Trade. This comes after alleged market manipulation by the trader, triggered by a social media post in which he unveiled his position in GameStop (GME), creating a massive rally in the company's shares.

Joining Catalysts to dissect the details is AnnaMaria Andriotis, the Wall Street Journal reporter who broke the story. Andriotis sheds light on the timeline of events, noting that the speculation around market manipulation began on May 12 when Roaring Kitty first posted a meme to X, formerly Twitter, reigniting the meme trade. Subsequent investigations revealed that "he had made a large purchase of GameStop options before that tweet had gone out."

However, Andriotis notes there are broader implications for E-Trade if the platform decides to ban Keith Gill. Such a move could result in the loss of a substantial portion of its customer base.

"This isn't an easy calculation that is playing out internally, and it does touch on some gray areas. And it's an area... that regulators themselves are looking at," Andriotis told Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith