> It's picking right back up because the people the shorters wanted to sell, didn't.

I know people believe they know about who's doing what in specific, vs seeing just the aggregate numbers, but I haven't yet been convinced that anyone actually knows this. I'm seeing news coverage, I'm seeing people lobbying others to buy more, I'm seeing speculation about what short sellers are doing, I'm seeing people saying their newly going short... I'm not seeing up-to-the-minute specifics on "Melvin Capital has lost $X dollars" or "still holds Y short positions." Yet the logic behind the "squeeze" assumes that specific knowledge.

I see how what you say is a possible explanation for what we see. But I can also imagine other explanations.