What is short squeeze.

A short squeeze in trading occurs when a heavily shorted stock (i.e., many traders have sold the stock they don't own in the hope of buying it back at a lower price) experiences a rapid and significant increase in its price. This forces those who are short to buy the stock at a higher price to cover their positions, leading to further price increases. It can create a domino effect as more short sellers cover their positions, causing the stock price to surge dramatically. Short squeezes can be driven by various factors, including positive news about the stock, strong buying interest, or other catalysts that cause short sellers to panic and rush to exit their positions.

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