From what I understand, this is an attempt to bankrupt the hedge fund Melvin capital. They take short positions on stocks in the hope it will lose value. They have one on Gamestop. The current rising value of the Gamestop stock will damage them and already has. Mevlin capital had to liquidate its Alibaba position. To stay afloat.
I'm sure the government is going to step in and bail them out since these hedge funds donate a lot of money to the DC swamp.
There's already talk about going after other hedge fund stocks to tank them as well.