Short Squeeze

A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses.
Their scramble to buy only adds to the upward pressure on the stock’s price.
A short squeeze refers to a stock rise in price, adversely affecting investors who’d expected a decline.
Signs of an imminent short squeeze include heavy buying or a high amount of a stock’s shares being sold short.
Buy-limit orders and hedging strategies offer short-sellers some protection against a short squeeze.
A short-seller borrows shares (usually from their broker) they think are due for a fall or to keep on falling, and sells them on the open market at the current price.
When the stock’s price drops, as the short-seller was betting it would, they then buy the shares back for the new, lower amount.
They return the borrowed shares to their stockbroker, keeping the difference in price as profit.
In the interim, they’re charged margin interest on the shorted shares until they pay them back

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