Disagree. The short-sellers are correct about GameStop's valuation. In a liquid and competitive market they would profit and help the price move into the direction of correct valuation.
Well, the market thought otherwise and market is always right.
They just forgot that efficient market hypothesis is just that, a hypothesis. Real world markets behave differently thanks to finite resources and secondary markets (essentially leveraged derivatives caused 2008 crash and I believe they'll cause another before regulators wake up from their sleep).
Isn't that essentially magical thinking? The market is what it is, and their strategy failed. It doesn't really make sense to blame the market when the scheme fails and presumably celebrate the individual or group's purported brilliance when the scheme works. What actually happens is the ultimate arbiter of who profits and who doesn't, not the hypothetical fairer environment that "should" have existed to reward certain strategies.
It's similar to blaming the roulette wheel when the gambler fails and praising the gambler when they succeed.
