Trading strategies
Short squeeze
A short squeeze is a rapid price surge that forces short sellers to buy back in a panic, amplifying the rise.
A short squeeze is a rapid price surge that forces short sellers to buy back in a panic, amplifying the rise.
When a heavily shorted stock starts rising, losing shorts must buy back to limit damage. Those buybacks push the price even higher, forcing others to buy back too: a snowball effect.
A heavily shorted stock climbs 30%; short sellers buy back in panic and drive it to +80%.
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