Add that the WSB punters betting on it going up were mostly buying call options. This creates its own feedback loops of people who sold them the options going out to hedge their positions by... (you guessed it) buying stock.
To muddy the waters on the naked short bit.... A covered short is where you've borrowed the shares first. So assume there are only 10 coffees. You borrow the 10 coffees from poodle and sell them to someone else. That's a covered short. But technically there is now more than 10 coffees out there (on paper). Poodle still thinks he owns 10, and can ask you to return them at any time. But the person you sold them to was a pension fund, who has a long term investment horizon and also lends it's coffees out for a bit of extra $$. You borrow 10 coffees from the pension fund, and sell those. Now there's 200% short interest. But technically you borrowed the coffees each time, so you were "covered" and could deliver the coffees to their new owners. And interesting that poodle and the fund (plus whoever bought the second lot of shorts) both think they own 10 coffees. Now start to unwind that when the price of coffee goes up and you have to buy back 200% of the issued coffees to cover your shorts... what happens to the price of coffee.