It's like a battle between 2 humans and the ants are on one side. Retail traders may have started this, but they certainly didn't make up most of the shares holding. This is why the short squeeze is unlikely.
People on WSB had some arbitrary price targets in mind and are in denial that the stock hasn't squeezed yet because they haven't hit those (completely made-up, with no basis in anything) targets.
Almost certainly not. We will learn, in time, how much of the run was shorts closing out and how much of it was momentum.
Keep in mind, too, that most institutional short sellers hedge their risk with out of the money calls. Given the increase in volatility, those calls would have more than covered the short losses.
Edit: I was just nitpicking the analogy, I agree that the “common folk vs hedge fund” narrative is totally delusional.