I think RH can probably hide behind the excuse of "We thought it was a pump and dump scheme and tried to cool down the market". I'm not certain this isn't, somewhere in its core, a pump and dump scheme, even if the majority of people buying seem to be honest in their intentions.
This is purely fundamental. As of this morning, short interest was still 139% of float - which means that there are still exist buyers who will pay any price, no matter how high - or default on their shorting obligation.
Is it anything but rational to buy something you know someone is willing to pay any price (at this point in time) with the intention of selling it later?
