Template:AI Short squeeze: Difference between revisions

Template:AI Short squeeze (view source)

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-A [[short squeeze]] is a situation in which the price of a security rises rapidly, leading to a large number of [[short seller]]s being forced to buy back at a higher price to cover their positions. This can create a self-reinforcing cycle, as the rising price attracts more buyers and puts further upward pressure on the price.
+A [[short squeeze]] is a situation in which the price of a [[security]] rises rapidly, forcing a large number of [[short seller]]s to buy back [[stock lending|borrowed stock]] at a higher price than it was at when they borrowed it in the first place to cover their positions when they run out of cash, or cojones, to keep the position on.
+This can create a self-reinforcing cycle as the rising price attracts more buyers and puts further upward pressure on the price.
 [[Short squeeze]]s can occur for many reasons, such as unexpectedly positive news about the stock, a change in market conditions or a sudden increase in demand driven by some jokey memesters on [[Reddit]] who are intent on giving the [[melvin|wedgie]] to our hedge-fund edge-lords.