My schitzo theory is simple. Melvin fucked up by overextending, a few people see this happen and capitalize making money. Other people see this and buy into it creating a frenzy. Hedge fund is now super fucked so he asks Daddy government to bail him out and fix the problem Daddy government says he is going to look into it then GME dips for 4 days (ongoing) and Melvin is saved.
To add insult to injury the government is siccing the SEC on people to punish them for picking on Melvin.

