Short Squeeze Mechanics
An excerpt from our Academy Module.
Executive Summary: The "Why" and "What"
Short squeezes represent one of the most explosive phenomena in stock markets, commanding attention due to their dramatic impact on stock prices and their ability to inflict colossal losses or spectacular gains. A short squeeze occurs when a stock with a high degree of short interest (i.e., a large number of shares sold short but not yet covered or closed out) rapidly increases in value. This increase forces short sellers to buy back their position...