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Short squeeze definition

Short squeeze is when a lot of people established short position in a stock (meaning they expected stock price to go lower); then something happened that appears to push the price higher; then this short position decided to cover (meaning buying the stock back) all at the same time, and that pushes price even higher (because all the buyers are trying to buy at the same time).

Short squeeze are somewhat an overused term. True Short squeezes are relatively rare. Some people like to proclaim "Short squeeze" every time a stock goes up.


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