Short Squeeze

A short squeeze happens when a stock price rises sharply, forcing investors who bet the price would fall (called "shorting") to buy shares quickly to limit their losses. This buying pressure pushes the price up even more, creating a self-reinforcing cycle. You'll hear about short squeezes during volatile market moments—they matter because they can cause wild price swings that catch traders off guard. The squeeze ends when short-sellers finish buying back their shares. For example, if many investors shorted TechCorp stock expecting it to drop, but positive news sends it soaring instead, those short-sellers might panic-buy simultaneously, sending the price even higher. It's a reminder that betting against a stock carries real risks.