short squeeze

Definition

A situation in which the price of the stock rises and investors who sold short rush to buy it to cover their short position and cut their losses. As the price of the stock increases, more short sellers feel compelled to cover their positions. More common than the opposite, long squeeze.

Use short squeeze in a sentence

When the price of the stock went up, the sellers quickly bought it in a short squeeze in hopes to cover thier losses.

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The short squeeze was the creative technique used by the expert securities trader who recommended they take the action immediately.

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There was a short squeeze that resulted after the stock rose, and a certain sense of smug satisfaction permeated in the boardroom of the company afterwards.

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short sell against the box squeeze