Incorrect. S3 only shows aggregate short interest. That data does not in anyway indicate Melvin's specific position. Almost certainly what happened is that while Melvin was unwinding other hedge funds were opening up new short positions at the current extremely dislocated prices.
And this is exactly why WSB's short squeeze theory is doomed to failure. It's not like once you beat Melvin that all of Wall Street just declares "okay, Gamestop is officially a $30 billion company and we will never bet against it again." The more WSB drives up the price, the more lucrative a short position becomes in the long run. And the more it attracts even more hedge funds into shorting. It's like a video game that has no ending, just the levels get harder and harder.
The difference with any traditional short squeeze is that there's always a catalyst that prevents the shorts from keeping their positions open. In the classic case it's a third party buying up a bunch of shares, then recalling them from the stock borrow market. In the Volkswagen squeeze it was the expiration of derivatives tied to Porsche's attempted acquisition of the company. WSB's original theory was that the gamma squeeze from options expiration would be the catalyst. But as of last Monday, those options were all deep in the money with crazy high implied vols. There's no gamma left to squeeze. WSB no longer even has a thesis, just memes.
With $3 trillion of AUM in the hedge fund industry, the only feasible end game is if WSB makes Gamestop the most valuable company in the world and criples the global financial system. Is it possible? Sure, lots of things are possible... I wouldn't bet on them.
I can virtually guarantee you that there won't be any meaningful short squeeze at current levels. The share price will be well below $100, before the short interest falls below 100%.