Huge short squeeze will come. every short thinks "he" can get out before the pack and be fine. Good luck with that. In meantime they pay the longs 2.7%/yr to keep holding the stock short.
I look for the dividend to double for next year to over 5%. This could be the catalyst that blows out the shorts as they won't want to keep paying to be short. Maybe even a one time large dividend would do it too. Until GME itself puts the smackdown on the shorts in this stock it may be sometime until we see a squeeze.
GME should be proactive in defending their stock. The small dividend was not enough. It's a throwaway. They have to up that number or do a big one time dividend to get them all the hell out and find another target. One way or antoher it will happen. When half the float is looking for an exit we may see a run to 30-45 within hours. All those years of waiting will pay off in < 1 day
I personally don't think GME is doomed. Even under the worst possible case scenerios, GME has the time, money, and experience to evolve into what it needs to be to continue to be a surviving and thriving retailer. And I'm talking about every worst possible scenerios that you can think of. The short positions have to cover eventually when GME just continues to make money year after year with no end in sight. And when the shorts begin to cover, the stock price will start to move up. I think the move up will depend on how the longs respond to all the short covering activity. Personally, I think GME is ripe for an eventual short squeeze, but I do not know when. I just think it's just a matter of time. So to anser your questions. I think the high short ratio will keep the GME stock price from going too much lower as short position holders will cover if it does, and at the same time, if the stock starts to move upwards, the short position holders will start to cover in fear of losing their profits or worse. I personally think a short squeeze will eventually happen. I just don't when.