Short squeeze

A short squeeze is when a stock increases sharply because investors who had "shorted" the stock (bet that the price would fall) have to buy it to stem their losses. As they buy it the price then goes even higher.[1]

An example of this was reportedly the skyrocketing price of GameStop stock, which surged by 18 times during the one month of January 2021.[2]

## References[edit]

1. ↑ https://www.investopedia.com/terms/s/shortsqueeze.asp
2. ↑ https://www.marketwatch.com/story/stock-futures-move-lower-as-investors-focus-on-tech-earnings-await-fed-11611751455