It isn't possible to create an infinite short squeeze with modern finance. A short interest in excess of 100% is not a problem considering that the outstanding shares can be turned over many times among the short interest holders wiping out their obligations. If those who are short are worried about the financial impact of a short squeeze, they can purchase call options to insure against loss. If the short squeeze causes prices to rise, they will profit on the option as they lose on their short position, so they don't lose money on net.