The idea is that the shorts never actually covered. They shorted it greater than 140% back in January, as that was the maximum that can be reported. Even before

The idea is that the shorts never actually covered. They shorted it greater than 140% back in January, as that was the maximum that can be reported. Even before January it was slowly rising from 4 dollars, so the hedgefunds kept doubling down on their bankruptcy jackpot. If they short the company to zero, the shares are worthless and they don't have to cover their short positions. This has always worked, they have power and abuse it to put companies like Toys R Us out of operation with no way to effectively raise capital. They did not anticipate that a company could turn around, which is essentially what has happened. Ryan Cohen the new CEO has effectively taken GameStop's domain name and is building a whole new business around it, with all the debts gone, the whole board replaced, and completely new management. Not to mention they have raised billions with ATM offerings and are now completely debt free. Even without a short squeeze, Gamestop is set to compete with Amazon for gaming, and has poached ex-Amazon talent in it's management. Fundamentaly it's a solid company, and that is even without the MOASS. Hedgefunds are trapped now, and are now triggering FTDs (Failure to Delivers), and need to reset the timers using various means including deep ITM options, ETFs, and shorting whatever shares they can get their hands on. For example XRT has been 240% shorted since Feb. They'll buy up a whole ETF just to get their hands on the GME shares inside. They will dig a deeper and deeper hole until they are margin called and forced to cover. Conservative estimates have retail holding 110 million shares, but due to the lack of transparency in the market, this cannot be proven. In addition all the new SEC filings that have been coming out have been specifically worded to agree with this. 005 for example is an ass-covering exercise about options manipulation, and 002 increases the frequency which short positions must be reported. Most of these are to prevent this kind of scenario happening ever again. Finally the media coverage has been constant dismissal of Gamestop and the promotion of other meme stocks such as AMC. Gamestop is no longer a memestock at this point and is a solid play MSM (the news network) do not want to advertise. Only recently has the media been talking about 'naked shorts' (2 weeks ago by accident), and 'dark markets' (2 days ago), where these subjects were discussed on Reddit 6 months ago! You won't find this on WallStreetBets, there is a dedicated subreddit SuperStonk, which is a bias confirmation echo chamber still, but incorrect info does get corrected and people called out.