Short Squeeze

A short squeeze happens when a stock price rises sharply, forcing investors who bet the price would fall (called "shorting") to buy back their shares quickly to limit losses. This rush to buy actually pushes the price up even more, creating a self-reinforcing cycle. You'll hear about short squeezes during volatile market moments—they matter because they can cause wild, sudden price swings that catch traders off guard. For example, if lots of investors shorted TechCorp stock expecting it to drop, but good news sends it soaring instead, those short-sellers panic-buying could send it even higher. It's a reminder that betting against a stock carries real risks.