Amateur investors have been manipulated by non-amateurs hiding behind r/wallstreetbets into believing that they can "beat the big hedge funds" if they just keep buying shares of GME at ever higher prices that are ever more far removed from any real underlying value. The big hedge funds are handling this they way they handle any routine fire drill. The SEC and Fed are giving the big players (not just hedge funds) winks and nods about what they'd better do if they don't want the SEC and Fed to swoop in and take control of the party.

As always, suckers who fell for a too-good-to-be-true "opportunity" will get badly burned. The big hedge funds and the wealthy/knowledgeable/skilled investment professionals who run them, will emerge unscathed. The non-amateurs hiding behind r/wallstreetbets are likely to come out way ahead since they had advance knowledge of how they were going to manipulate the market, but they may be relieved of their winnings by the SEC, which is inclined to come down hard on market manipulators who directly target clueless amateur investors. The suckers are now filing a class action suit against amateur-oriented trading platform Robinhood for trying to stop them from committing financial suicide; this lawsuit will go nowhere.