I'm trying to understand the short-squeeze situation happening with GameStop. From what I understand, the basic idea is that as people continue buying up the available stocks, the short sellers are less and less able to buy them back and will continue to bleed money as the demand for (and therefore price of) those stocks climbs ever higher.
Why can't GameStop just split their stocks? It seems to me like the whole squeeze would disappear overnight-- the stock price would drop dramatically and it would increase the available supply. I can understand why they as a company might want their stock price to keep ballooning; but if a short seller is facing $8 billion in losses, they could offer GameStop a massive
bribe investment in exchange for a stock split and still come out ahead.