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short squeeze
What does short squeeze mean?
A rapid price rise that forces short sellers to buy shares to cover their positions, which pushes the price even higher in a feedback loop. The core mechanism WSB weaponized in 2021.
"If enough apes buy and hold, the short squeeze does the rest."
Origin
Established market term; became mainstream via the Jan 2021 GameStop short squeeze coordinated on r/WallStreetBets.
Frequently asked questions
What is a short squeeze?
It's a rapid price rise that forces short sellers to buy shares to cover their positions. Their buying pushes the price even higher, which forces more shorts to cover — a self-reinforcing feedback loop.
How did short squeezes become famous?
The term went mainstream through the January 2021 GameStop event, when retail traders on r/WallStreetBets coordinated buying and holding to trigger a squeeze against heavily shorted hedge funds.
Why do short sellers get squeezed?
Because a short position loses money as the price rises, and to close it the short must buy the stock back. When many shorts are forced to buy at once into a rising price, the squeeze accelerates against them.
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