Hypothetically (and I can't really comment on gamestop as I don't know the full story) but if they are already shorting more than the SOI and will continue to blast it with these "fake shorts" what's to stop them continuing that to infinity to maintain the status quo on it?
And to protect themselves from being blown up create a sacrificial entity and transfer the short positions via some kind of swap contract to them, thus limiting contagion.
I'm just being creative off the top of my head but these are 2 scenarios I can think of why wall st would win that play and not the retail holders. If I am wrong and they can't do this sort of stuff please correct me.
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