This is actually not a split but a stock dividend, i.e. giving new shares to shareholders.

So, if you have naked shorted and created phantom shares, you have to come up with the stock-dividend shares for those phantom shares. (GME naturally only issues those dividend shares to the actual shares of the company.)

I’m not a professional in this field, but that’s my undertanding of the situation.

Edit: Tesla did this in 2020 probably in order to combat short sellers and their stock price went up 80%

2. Edit: Tesla also announced a few days ago that they are planning to issue stock dividend again.

This is actually not a split but a stock dividend, i.e. giving new shares to shareholders.

So, if you have naked shorted and created phantom shares, you have to come up with the stock-dividend shares for those phantom shares. (GME naturally only issues those dividend shares to the actual shares of the company.)

I’m not a professional in this field, but that’s my undertanding of the situation.

Edit: Tesla did this in 2020 probably in order to combat short sellers and their stock price went up 80%.