An unusual circumstance causes the price of a stock or other tradable security to rise quickly. Short squeezes occur when a disproportionate number of short-sellers hold positions in the securities. The short squeeze begins when the price unexpectedly rises. It occurs when a sufficient number of short-sellers decide to cut their losses and sell.

Short squeeze is when a stock trades with a higher volume than the average and the price continues to rise. Short squeezes occur when many investors believe that the company is doing well and they all want to invest in it.

The term “short squeeze” is used to describe an event that causes a rapid and significant increase in the price of a stock. When a company releases positive news that causes a short squeeze, it can lead to a series of events that boosts stock prices even higher.