You keep repeating that short squeezes are illegal but that's not true. Manipulating prices to cause a short squeeze is illegal, but that's not what happened here. Some people bought GME because they liked the stock. Others bought because they thought a short squeeze was coming.
If I think the price is going up and buy, that's legal. If I manipulate the price to go up after I buy, that's illegal. It's the same thing.
If I think the price is going up and buy, that's legal. If I manipulate the price to go up after I buy, that's illegal. It's the same thing.