Yeah, it's more attractive to short it compared to 2 weeks ago, but consider:

(1) Price is determined by supply and demand, not one person's evaluation/perception of value. DOGEUSD was useless 3 months ago and is still useless (even more useless than GME), but shorting it then would've blown you up because of demand exceeding supply. The volume of the incoming retail flow is hard to predict, if enough retail people ascribe aesthetic value to it, the price will go up.

(2) Borrow is extremely expensive because of high demand for the relatively small float, so you need very significant edge to justify the high borrow costs.

>What I don’t get is: Now the stock is clearly overvalued. Doesn’t this make shorting it now so much more attractive?

It sure does. But good luck timing it. The whole point of a short squeeze is that the market can stay irrational for longer than you can stay solvent.

Technically yes, but as they say, the market can stay irrational longer than you can stay solvent. Anyone considering shorts should go spend some time in r/wallstreetbets and figure out if that is a group they'd want to play chicken against.