Unintended consequences - will passive tracker funds be the biggest Gamestop losers?

The blame game of who has done what in Gamestop continues. One thing is sure, people have made and lost fortunes. There is another angle to it that has not received much attention, yet, namely the entire business of passive tracker funds just doing trades automatically as ETFs are re balancing. The Gamestop case is basically exposing some extremely important aspects/flaws of passive tracking investments.

Retail ETF, XRT, has squeezed "to the moon" as Gamestop has surged. Note the extreme volumes over past days. Investors tracking this have basically all been busy loading up on Gamestop without even thinking about it.