But with GameStop, every time a short seller exits the market and buys shares, new short sellers are coming in to replace them, keeping the same downward pressure on the price and, in fact, short interest is increasing.
What it means: “That tells me what’s moving the market is the long buyers. This is not a short covering rally,” Dusaniwsky said.

“If it was I would see shares shorted dropping precipitously. For this kind of price move, I would have to see short interest being wiped out.”

“One way I can see short interest is not being wiped out is because the stock borrow rate is getting higher.

“That means shorts are not getting out on a net basis.”