Replies to post #64780 on Hall of Fame Beverages, Inc (HFBG)

[dmcghee86]

Investopedia explains Short Squeeze
Short squeezes occur more often in smaller cap stocks with small floats.

If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.

[Screech691]

when people who have been shorting a stock (which seems to have been happening extensively here recently) have to cover at higher prices because of the pps rising....it enhances the run as the pps goes up because they have to cover higher and higher to minimize their losses.

[Autorotate]

A squeeze is when there is a lack of supply and an excess for demand.

If a stock starts to rise quickly, the shorts will want out. So, if HFBG keeps rising fast, the guys in short positions will be forced to liquidate their shares and cover their positions by actually purchasing the stock instead of manipulating it. If enough shorts buy it back, then its pushed even higher.