What makes you think WS wasn’t profiting on the long side? These are professionals who live to exploit anomalies day in day out. Sure, retails made money but most of the pot went to...Wall Street.
If there is a sufficient squeeze, and GME doesn't issue new shares, each of those options (especially those purchased earlier) will result in tens or hundreds of dollars of profit to the holder.
What's your math for asserting that Citadel is making "the most money" "by a huge margin"?