[rk06]

wouldn't that drive the value of stock down and threaten the company itself?

I am financially illiterate, but I understand the reddit posts to mean that short squeeze is inevitable because GME is >100% shorted and issuing more shares would kill the short squeeze and drive the price down

[stickfigure]

Unless the company is selling or buying stock (or otherwise exchanging value for stock, as with employee grants), the price is immaterial to it. Just a random number on a ticker.

A low stock price creates risk because it makes it hard (expensive) to raise capital. Well, here you are, it doesn't get better than this!