I've seen surprisingly few people point out the obvious problems with Gamestop. As internet speeds increase, particularly with the ps5 being download only (I think?) isn't it a rather bloody obvious short, that if the market moves digital, Gamestop will become another kodak/VHS company?
Shorting is a funny game, some of it murky and politically/nation based. Where it gets tricky here, is that Robin Hood has an unusual income model, where you can't fail to ignore the reported ~40% of it's income comes from algorithmic trading from the exact hedge funds that were betting against Gamestop. It boils down to, did those hedge funds collude to request this change of policy? In which case, sec would probably be forced to take action.
This kind of pump and dump scam is toxic in both directions. I'd like to think you know the risks and take your chances on these type of investments. They are literal gambling where the punters snd ptofessionals can influence the outcome.