Yeah, it's definitely a bubble, it's just a question of who takes the big loss -- if Melvin has to cover now, they do, otherwise it's people who are going long at the top & holding (which is what all the r/WSB noise is promoting). This is why Citadel and Point 72 backstopped Melvin -- if they can weather this bubble, that's their best outcome. In fact, increasing the short position now might be a great move.