Short squeeze

Chart showing the price movement and volume during the 2008 short squeeze of Volkswagen shares.

In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. A short squeeze occurs when demand has increased relative to supply because short sellers have to buy stock to cover their short positions.[1]

  1. ^ "Short Squeeze". Archived from the original on 2010-09-18. Retrieved 2010-09-17.

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