Likely just new shorts from a variety of places. I've seen plenty of people opening shorts with the expectations that WSB's play will blow in their face eventually.
Yeah - I mean, why wouldn't it attract a bunch more shorts that open their positions at the current highs?
Wouldn't surprise me if Melvin hasn't really closed their position - but it wouldn't be irrational to think that /r/wallstreetbets will at SOME point in the future move on from gamestop to something else.
The problem is that hedgefunds call retail traders stupid and if they are really that stupid then they will hold the bags, which is exactly what the shorts don't want.
Wouldn't surprise me if Melvin hasn't really closed their position - but it wouldn't be irrational to think that /r/wallstreetbets will at SOME point in the future move on from gamestop to something else.