There are a multitude of scenarios on how this could play out, and I wonât claim that I know which it will be if even any of the ones I mentioned.
All scenarios have very large assumptions and will almost certainly play out very differently
1: Gamma squeeze with a short squeeze following
The gamma squeeze indeed happens, forcing the short squeeze as well and GameStop doesnât manage to issue any shares in time. Retail manages to sell directly to covering hedge funds. Also assumes that when the time comes regulators/brokers also function normally. this scenario is likely if the rumours that hedge funds couldnât cover because the volumes were too low could were true. This is the best scenario (especially if hedge funds lied about covering) for retail. Not necessarily for GameStop themselves.
2: Squeezes with a share offering
The squeezes happen (if the hedge funds didnât actually cover the price would even rocket further) but then GameStop also issues shares. In this scenario, GameStop could offer shares at, bellow or above market price to the market or directly to troubled hedge funds. If issued at market it could become a fight between retailers and hedge funds for those shares (really difficult to say what would happen) or if offered directly to hedge funds (even if offered at above market price) this also might not end well for retailers. The best scenario for GameStop themselves as they got some fundamental value out of this.
3: Squeezes donât happen
Hedge funds are already much less exposed and stay in way longer than expected or short even more now, market makers already did their delta hedging correctly before the end of today, regulators step in or a multitude of other things which caused a crash which scares out all
and large losses occur. 
are left as bag holders and GameStop price returns to normal, GameStop couldnât raise capital in time and only got media attention from this.
4: Squeezes donât happen share offering
Same as above but GameStop manages to get a share offering in in time (maybe even causing the above) and profits, or doesnât manage to offer shares in time and still offers shares after this whole thing is over.
For some this might be interesting:
GameStop Corp., NYSE:GME | Short Interest | Flagged Changes | Largest Shorts | Cost To Borrow - ORTEX (just open in incognito if u used your free page views)
Last confirmed number short interest was 61m and the current estimate is 38m (I donât know how they came up with this estimate, it doesnât say). We honestly just donât know until the exchange confirms it. Ortex was far off before (in both directions) and this estimate would be in tone with Melvin Capital among others actually being out. Still a lot of shares short and the possibility for a gamma squeeze today but if the funds actually managed to cover that much that surely isnât good news for retailers, not game-breaking but surely not good. So take this number of shares short with a shovel of salt.
Also would find it difficult to imagine market makers just waiting around and not preparing, am quite skeptical of a gamma squeeze happening today but weâll see.
It might still moon it might crash, nobody knows at this point. The only certainty is volatility.