>why do you think a hedge fund would concoct a nefarious, extremely uncertain scheme to get people to think they closed instead of actually closing?
Because they haven't closed their positions, and that information would tip shareholders into thinking they might release some profit before the price levels out.
>They would have lost literally all their money, even with the additional investment, if they were still in when GME soared to $400
No. Not if their positions haven't closed.
If you really think this through, why would they actually announce they have covered the shorts instead of simply reclaiming a short position?