BioAmber Inc fka BIOAQ

[kevroc]

My limited understanding is that a sustained rise in price would force a short seller to cover the difference before dropping below the maintenance margin or risk a margin call. They can't just hold a position like a long (cash) buyer because their broker won't ride that loss for too long. If the owner didn't deposit more money to maintain the minimum margin, the broker could liquidate other holdings in the account to cover the debt.
The reverse is also true. If you open a long position with any borrowed margin and the price drops below maintenance level, you would get a margin call if you don't cover quickly.

With $BIOAQ rising in price, the short sellers will be forced to cover and close their positions at the cheapest price they can get (at a loss to them) and that buying pressure (additional volume) helps elevate the share price even higher. That's the squeeze.

This is why I only trade cash! :)