Investment & Investing

Article in the FT covers this to some extent

The SEC is also likely to investigate whether users are being paid for their recommendations by companies or other organisations seeking to move a stock. Any investigation could take months — or longer — involving subpoenas of user IP addresses and broker trading records, Mr Cutler said.
The commission can also intervene sooner if it sees egregious market moves or suspects manipulation by suspending trading in a stock or by seeking temporary relief through the courts. Mr Cutler noted, though, that suspensions were often unpopular because it left investors who had jumped into the stock stuck in the shares.
The SEC declined to comment. Reddit said it prohibited the facilitation of “illegal transactions” and that it would “review and co-operate with valid law enforcement investigations or actions as needed”

Market manipulation is crime

Personally, shorting a stock over 100% to force it to crash in your favour is market manipulation.

This is the unique element of a squeeze. Because of the over-short, the only way they can exit their positions is by buying the underlying stock. Which equals near infinite 🚀.