It wouldn't necessary have to be a hedge fund. I was just thinking of a money manager or entity who controlled enough money who would take the calculated risk to take on the short positions by buying big(buying as much as it takes) in order to trigger the short squeeze as a means to make lots of money. GME's market share is quite a lot at a little over 3 billion, but certainly within a range that someone/entity could surely do it.
If a hedge fund or other large investor does not do it, the Game Stop is already doing it to itself with their share repurchases. The company is taking itself private slowly with its share repurchase program. The lower the price goes, the faster the company will be able to take itself private with a given amount of money.
I have been tracking GME share repurchases over the past 9 quarters. With the one exception of the May-July 2011 quarter, GME has been very good about buying back their stock at the lower end of its trading range. By the time the company discloses their repurchases, the stock price is usually $2 t $3 higher than where the repurchases were made.
I suspect the company will be in buying back their shares at current prices given the drop the stock had yesterday. Since the end of the quarter the company repurchased 3.3 million shares at an average price of $22.97. The stock is almost back down there now.