You are correct and the higher that the reddit crowd tries to drive up GME stock prices the larger the incentive for hedge funds to come in and re-short the stock. Also if you go to the SEC website you will see that there is insider selling from Gamestop executives. I suspect that the Board of Directors have put a stop to this as there was insider selling from the 13-15th, but nothing after. A couple of Gamestop executives have already made out with a couple million dollars on this short squeeze. These are not main street people--these are suits with inside information doing things that are not illegal, but are not moral either.
The story is a lot deeper than people realize:
https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001326380
If somebody wants to do real journalism check out the link above and track the dates back to the historical stock prices on GME. You will find that the stock prices were up 50% on the close of day on Jan 13th.
This is most likely the beginning of the short squeeze and the insider selling starts on the 13th and goes through the 15th and it would have kept going if the company didn't impose internal restrictions. People think its crazy that Robinhood had suspended trading on the buy side, but GameStop themselves have probably suspending selling by executives to prevent them from participating in this Reddit driven short squeeze. Follow the money!
RE: GameStop is NOT simply Wall Street vs Main Street