short squeeze

[ shawrt skweez ]

noun

, Stock Exchange.

1. a condition that occurs when the price of a stock or security rises unexpectedly after an unusually large number of short transactions, forcing the short sellers to cut their losses by rapidly buying up the stock, in turn driving the price even higher.

Word History and Origins

Origin of short squeeze¹

First recorded in 1875–80

Example Sentences

That began what is known as a “short squeeze,” when those big investors that had bet against GameStop were forced to buy its rapidly rising stock to offset their massive losses.

From Seattle Times

Meme-stock companies have more shares trading in the market than they did in 2021, which could lessen the chances of what’s called a “short squeeze,” according to Nick Battista, director of market intelligence at tastylive, a streaming network geared toward options traders.

From Seattle Times

A short squeeze is a relatively rare event that can yield eye-popping profits for people riding the wave.

From Seattle Times

Such a short squeeze likely contributed to GameStop’s thrilling ascent in 2021, but the SEC”s staff said it was a small fraction of the overall purchases and that GameStop’s stock stayed high even after short sellers had gotten out of their trades.

From Seattle Times

Another danger to the stock is a “short squeeze.”

From Seattle Times