Because they self evidently are, markets are so self evidently irrational the concept of "animal spirits" is one of the first thing we learned in econ 101, almost every post about the stock market will have someone saying the market can stay irrational longer than you can stay solvent
unless you want to explain how what happened with gme reflected a rational valuation of the company
Markets are just collections of individual decision makers, making resource allocation decisions. If you want to understand "market rationale" you have to make some attempt to understand the why those individuals are making those decisions. When you do this, you tend discover perfectly rationale decision making. If you still want to call it irrational because you disagree with the motives of those decision makers, or you think they've made mistaken assumptions, or because their risk appetite exceeds your risk appetite, or because you simply think they're dumb, then all you're doing is using the word "irrational" wrong.
For instance your comment about GME seems to involve an intentional misrepresentation of what occurred, for the purpose of supporting a judgemental comment. All of the decision making involved was perfectly rational. The decision to short the stock is a perfectly rational risk to take based on the short sellers analysis of the business fundamentals. The decision to squeeze the stock is also a perfectly rational risk to take based on the knowledge that the short sellers would eventually have to close their positions. Your statement that the price of GME should have (in a rational world) reflected the value of the business is simple a misrepresentation of how the system works. The price of GME represents the demand for GME, and for a set of perfectly rational reasons, that price was temporarily misaligned with the value of the underlying business. I get the feeling you're trying to make some criticism about how the mechanics of the system work, but to do so under the pretence of irrationality is simply wrong.
