Earlier quoted context omitted.
According to Matt Levine, Archegos's positions in sevaral companies was large enough that it had, by its own actions, significantly driven up their prices. The bubble burst when one of these companies - ViacomCBS - issued new stock with the intent of capturing more of this sudden interest, and sales of the offering fell way short of expectations.
In insane scenarios like this, is there anything preventing a company from issuing new stock, waiting for the price drop from liquidating major holders, and buying back an equivalent amount?
GameStop could not do this during its initial crazy ride, on account of being in a fiscal-year-end blackout period. Since then, it has said it may issue new stock.
Any company making such an offering whould have to be frank and completely transparent about the risk, to avoid any hint of securities fraud, and I would not be surprised if the company would still be sued if the price subsequently fell. In Hertz's case, being sued would not be a problem.
ViacomCBS claims to not have known that the run-up of its stock was driven by Archegos's speculation, and seems to have been harmed by the outcome. It had Goldman and Morgan Stanley leading the sale of its new issue, and it so happens that they were also prime brokers for Archgos, but bailed out fast enough to avoid big losses. Make of that what you will.
I am just repeating here what Matt Levine has said on the topic.