What Is a Short Squeeze?
A short squeeze happens in financial markets when the price of an asset rises sharply, causing traders who had sold short to close their positions. It occurs when a security has a significant amount of short sellers, meaning lots of investors are betting on its price falling.
A short squeeze begins when the price of an asset unexpectedly jumps higher. It gains momentum as a significant number of the short sellers decide to cut losses and exit their positions.
