Short Squeeze

What does it Mean? A situation in which a lack of supply and an excess demand for a traded stock forces the price upward.
 
Investopedia Says... Short squeezes occur more often in smaller cap stocks with small floats.

If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.

Terms Related Links

Buy Back
Buy To Cover
Days To Cover
Float
Liquidity
Long Squeeze
Short Covering
Short Interest
Short Sale
Short Sale Rule
Short Squeeze
Small Cap

Terms Related Links
Moving Average Explosions - Find out how you can profit from this short squeeze strategy.

Short Selling: The Risks - Short selling has its risk. Learn about them here.

The Short And Distort - Stock Manipulation In A Bear Market - This sinister version of short selling tries to profit by generating fear in the market place. Find out how you can help prevent "short and distort".

Using The VIX For Shorting - Find out how traders can use this tool to identify shorting opportunities.

What does "squeezing the shorts" mean?

add investopedia foot
www.investopedia.com