Short Squeeze

A short squeeze happens when a stock's price jumps sharply, forcing short sellers to buy shares to cover their positions to prevent further losses. This rush to buy increases demand, pushing the stock price even higher. The phenomenon is often triggered by unexpected positive news or a high volume of short interest. It creates a rapid feedback loop where rising prices compel more short sellers to buy back shares, intensifying the price surge. While a short squeeze can lead to dramatic spikes in stock prices, it's often a game of timing and can be risky for those trying to jump in or out at the right moment.