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(as does Blackrock, by all accounts)
That's why I'm surprised it's going on for so long. DFV is small fry compared to BlackRock's holding and so if he doesn't move fast he may be left looking back at his paper net worth and wondering what could have been.
I suspect he'll exercise another chunk of those calls (if not all of them) and be done with it. He'd probably also sell his long holdings and then buy back in once it's all back to normal (if he even cares about the stock market any more after a windfall like that).
No idea what it means for the average schmo who got caught up in this. I need to go read the history of the VW short squeeze to see what happened there, or watch that video above.
Greenbank
In an open market - the difference is that he can effectively control the market as he has what Melvin wants (as does Blackrock, by all accounts).
This means they can just not sell when Melvin has to buy, because of margin calls on the borrowed stock (as well as the financing costs on the stock, and on the loans from Blackrock / Citadel etc...)
I suspect there will be some sort of deal between the big stock holders / lenders to divvy up any value in Melvin et al.
Like you, however, I'm pretty much over my head.