So the narrative for $GME, a brick and mortar store that has been closing down shops since the start of the Big Coof, is that a community of traders all agree to buy the stock and its calls, forcing price to go up and MMs /dealers to purchase shares themselves to hedge against exercised calls.
What the chart is: GME share price divided by the money supply.
Now, the false party is over.
Sorry if I haven't replied to your message yet, I'm a bit backlogged :)
M1 = money supply
M1 is going up because the (US) Fed is printing more money. This dilutes the value of the U.S. dollar, meaning everything that trades against it will appreciate in value.
Here's some information on short squeezes: https://www.investopedia.com/terms/s/shortsqueeze.asp
I would really, highly recommend you not use $GME as an example for anything as a newcomer. It will only serve to confuse you.