Let's forget what we have already mentally invested in the link between Overstock and GameStop.
A sunk cost test reveals that the Overstock event was only a tactical possibility to force short sellers, and not a direct trigger for GameStop's liquidations.
GameStop's liquidations in 2021 resulted from a unique convergence of factors, including unprecedented coordination among retail investors, which was not guaranteed by Overstock's action alone.
Would we have the same conviction about this causality if we had not observed the Overstock event? Certainly not.
For example, without the massive engagement of retail investors from r/wallstreetbets, the legal precedent set by Overstock would not have been enough to trigger such a short squeeze.