What's causing all these stocks to be squeezing at the same time?
I'm not even sure we should be saying GME was WSB's doing, although it is a fun story.
I think the real world meaning of this, is that people shorted stocks that were perhaps in temporary distress, but many if not all of them could be saved if they got a lot of cash, which they can do, if they suddenly can sell stock at an inflated price. The short theses could have been self-fulfilling, but now things are going the other way. It's not really a violation of objective facts if the market decides to give these companies more capital. Who's to say they shouldn't get it? Especially with all the money showered on IPOs lately?
I used to think short selling was honorable, misunderstood, etc. but if it really is a self-fulfilling thing, maybe it isn't a social good, especially when the viability of a company is affected by the temporary situation with covid.
Maybe GME and similar should get a year's lifeline, for the good of all their stakeholders, because a lot could and almost certainly will change.
It reminds me of when "everybody" (in a vague sense) suddenly took covid-19 seriously. There's a dynamic sort of like people are particles in an avalanche or something. I remember the week or so leading up to March 13th (iirc) as just having the pressure building and wondering when something would be done, and then there was the tipping point.