Friday, April 06, 2018 3:42:35 AM
Short Interest and Short Squeezes
A short squeeze forms when short sellers are forced to cover some or all of their positions by buying back the shares. Usually a short squeeze ignites on a large price, and volume spikes sparked by news or rumors. The unavailability of additional short shares traps the existing short sellers, causing forced liquidations from margin calls, which sets off another wave of buying to cover short positions. Oftentimes, individual brokers may also raise the maintenance margin requirements on these stocks, which forces more short sellers to downsize their positions. This pushes the stock price even higher as more desperate short sellers panic trying to cover."
Read more: Short Interest https://www.investopedia.com/terms/s/shortinterest.asp#ixzz5BsPN0u00
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