A short squeeze occurs when the price advances so fast, that short sellers are forced to cover their positions (buy the stock back), which drives prices even higher.
Short Squeeze - What it is:
A short squeeze occurs when the stock's price doesn't decline as anticipated.
A short squeeze is a situation in which a stock's price increase triggers a rush of buying activity among short sellers.
Short sellers must buy stock to close out their short positions and cut their losses, which results in a further increase in stock prices, which compel still more short sellers to cover their positions.
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