short squeeze

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Short squeeze

When a lack of supply tends to force prices upward. In particular, when prices of a stock or commodity futures contracts start to move up sharply and many traders with short positions are forced to buy stocks or commodities in order to cover their positions and prevent (limit) losses. This sudden surge of buying leads to even higher prices, further aggravating the losses of short sellers who have not covered their positions.
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Short Squeeze

A situation in which a rapid increase in demand coupled with a small supply causes a stock price to rise significantly. This occurs most commonly in small companies with relatively few shares outstanding.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

short squeeze

The pressure on short sellers to cover their positions as a result of sharp price increases or difficulty in borrowing the security the sellers are short. The rush to cover produces additional upward pressure on the price of the stock, which then causes an even greater squeeze. Also called squeezing the shorts.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
"Neither the excessive price volatility relative to the overall market nor high financing costs is deterring shorts from building and holding onto their positions and single name short squeezes do not look to be in any of these top 20 stocks' near-term future," he said.
'News flow regarding an agreement with IMF over the weekend can bring back market bulls and lift the 100 Index, as we expect value hunters to rush in and initiate short squeezes,' they added.
However, I would not advise individual investors to short Tesla shares since the short interest means short squeezes can inflict catastrophic losses.
To access SqueezeTrigger Prices ahead of potential short squeezes beginning, visit
BUYINS.NET / is monitoring TransCanada Corp (NYSE:TRP) in real time and just received an alert that TRP is crossing above its primary SqueezeTrigger Price, the price that a short squeeze can start in any stock.
The research also found that 69% of respondents were concerned that short squeezes would intensify if the measures were implemented, meaning that if some participants know of others' short positions, they will be more likely to acquire a stock knowing that covering of the short position will need to take place and thus further raise the stock price, which potentially facilitates a squeeze on liquidity.
They do not directly address the important issue of whether either of the auction formats (uniform-price or discriminatory) is more vulnerable to short squeezes that are often known to develop in the repo or the secondary market following an auction and, in fact, prompted the Treasury to consider alternative formats.
Additionally, deliberate acts of cornering an auction by an individual or a cartel could result in short squeezes and specials, as was the case with Salomon Brothers in the May 1991 two-year note auction.
Manaster and Tashjian (1994) conjecture that the answer may be related to the fact that the presence of futures contracts induces the possibility of short squeezes in the underlying commodity markets.
A number of papers have generated insights on how large trader(s) may manipulate a corporation's shares and give rise to situations like cornering, short squeezes, etc.
Jarrow, "Market Manipulation, Bubbles, Corners, and Short Squeezes," Journal of Financial and Quantitative Analysis (September 1992), pp.
We could be setting up the mother of all short squeezes in the Brent crude oil market, with short interest the highest since 2010.