The SEC and Fed will not allow the blatant market manipulation to continue. Leaving aside the extreme riskiness of naked short-selling and the inexcusable laziness of the SEC in allowing it on a large scale with no meaningful regulation, in this particular case, the short-sellers' (naked and otherwise) positions are grounded in the underlying reality of the financial prospects of Gamestop, while the suckers who have been persuaded to drive up the share price by buying and holding at absurdly inflated prices are grounded solely in a plan to profit by market manipulation. The SEC will rightly focus on punishing the people who are suckering the suckers, as they are the only participants in this mess who will (before SEC action against them) end up with big profits.