This is the whole story. You can tell that game consoles, baby formula, and GPUs are under-priced, because it is worth spending hundreds of dollars and hours/weeks of dev time /on top of/ the too low price, just to get your hands on them for resale.
I think people get confused, because the effect of a spike in demand or a decrease in supply can look the same, from a pricing standpoint, as collusion amongst multiple retailers - but we're not talking about gas stations across the street from each other agreeing not to sell below X price, this is a massively distributed phenomenon, which again goes to show that it is a genuine reflection of the mis-pricing of goods in the current market.
The real tragedy when it comes to shortages of goods with inelastic demand, like baby formula, is that the various price gouging laws that prevent traditional retailers from correctly pricing items in the face of shortages, do nothing to actually control the price - in fact, they introduce a lot of inefficiency, and opportunity for counterfeits etc. I would much rather pay triple/quadruple at Target or Walmart than pay 0 because I'm looking at an empty shelf, or pay quintuple to some rando on eBay who may or may not actually be selling a genuine product.