What is Short squeeze?

A short squeeze is a sharp rally driven by trapped short sellers being forced to buy back to cover. The signature is crowded-short funding, rising price, and a spike in short liquidations.

How to read it

Negative funding (shorts crowded) + price refusing to fall + rising open interest is the pre-squeeze setup. The squeeze confirms when short liquidations spike.

FAQ

How is a short squeeze different from a long squeeze?

A short squeeze burns trapped shorts (price spikes up); a long squeeze burns trapped longs (price flushes down).

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