TD Ameritrade is restricting purchasing on volatile stocks, however from what I've seen they only increased the margin needs to 100%. Anybody buying a brief squeeze on margin would need to be a retard. It's dangerous, and a sensible position for TDA to take so they are not left holding the bag of retards who can't meet a margin call. It also saves YOLO newbies from themselves, though I doubt that's TDA's motivation.

OP left out an important aspect. Every day which Melvin can not find the Switches the parents have paid , he must pay a forfeit to each parent for their trouble of waiting for them. And also the more pricey these Switches get on the market, the higher the forfeit, because these parents should by rights have these Switches, regardless of how expensive they have gotten. Melvin tries to put off paying the higher market cost as long as you can in the hopes that it will eventually return. Eventually the forfeits become so large, Melvin has no option but to swallow his just desserts and just pay market price for those Switches.

At least that is how my retarded brain interpreted it, but I'm just a dumb ape, don't listen to me. I am just holding GME since I believe in the firm! ??????

Edit: thanks for the interest in/support for this post, RIP my inbox afterwards. A good deal of the queries below can be readily answered if you simply Google the phrases. Https://www.investopedia.com/ is a good starting point. Any terms there you do not understand, likewise Google them. This should be a part of your DD/research. If you can not do that, you have no spot trading. Any questions concerning speculation, I know as much as you can.

Also forgot to mention the bit where Melvin's parents did not need to see their son humiliated so they spoke to their buddy in the nation club who runs Robingoods, the shipping service that gives people their Nintendo's.
The details of the game information in https://www.acbells.com/